PepsiCo, Inc. ($PEP) Earnings (Q3 FY22)

 Pepsico, Inc. ($PEP) Earnings and Opinion:


PepsiCo is a company in the Consumer Defensive sector and operates in the Beverages- Non-Alcoholic industry. The company manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. PepsiCo was founded in 1898 and is currently headquartered in Purchase, New York. The company made its debut on the NYSE in 1919. 

PepsiCo Earnings Results:

  • Adj Diluted EPS of $1.97 beating expectations of $1.84
  • Revenue of $21.971B beating expectations of $20.813B
  • Adj Operating Income of $3.595B beating expectations of $3.315B
  • Adj Operating Margin of 16.36% beating expectations of 15.91%
Opinion:

PepsiCo is currently moving up almost over 5% in todays trading session. The company reported earnings before the market opened this morning. PepsiCo is doing a wonderful job of curbing inflation with raising prices on its products, which is showing double-digits gains, even though there sales volumes are down. In turn, the company raised its outlook for the rest of the year, which could turn the tide for the upcoming earnings season. One of the main components that limited the growth of profit, was the 3 percent shaved off from earnings, due to the strengthening of the US dollar. Overall, the quarter was wonderful as the company is able to keep up demand with the rising prices of products. As far as the earnings go, the results couldn't have been much better. They look to be growing in places all over the world, and the profitability really stands out, especially in hard times a lot of companies are facing. As far as valuation goes, EV/EBITDA is at 17.97, which is a little bit higher than the average. P/E ratio is at 25.61, which is a little bit under the average. P/FCF is at 36.93, which is above the median of competitors. In my opinion, Pepsi may be a little bit overvalued, but you have tp give them credit with the running of their business. They seem to be making a huge effort to try and grow the company, even while facing some hardships with the economy. I think the business is well established, and seems to be a stronghold in this sector. This could lead to limited growth, but if you are looking for a good dividend stock, this could be an answer. I am hoping that Pepsi’s earnings report dictates what is to come with all of the other big companies earnings reports. We are in dire need of a turn in the market to gain some of the tough losses we have encountered this year. I love Pepsi, and I love what they are doing. I am long PepsiCo ($PEP).


*Information from Bloomberg and Yahoo Finance  

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