PepsiCo (NASDAQ:PEP) Posts Earnings Results, Beats Expectations By $0.09 EPS

PepsiCo (NASDAQ:PEP) posted its quarterly earnings results on Thursday. The company reported $2.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.03 by $0.09, Zacks reports. PepsiCo had a return on equity of 58.28% and a net margin of 10.24%. The business had revenue of $22.73 billion for the quarter, compared to analysts’ expectations of $22.28 billion. During the same quarter last year, the business earned $2.28 earnings per share. The firm’s quarterly revenue was up 1.0% compared to the same quarter last year. PepsiCo updated its FY 2025 guidance to 8.038-8.038 EPS.

PepsiCo Stock Up 7.5%

Shares of PepsiCo stock opened at $145.44 on Friday. The stock has a market cap of $199.41 billion, a price-to-earnings ratio of 21.39, a PEG ratio of 4.23 and a beta of 0.45. The firm’s 50-day moving average is $131.97 and its two-hundred day moving average is $141.24. PepsiCo has a 1 year low of $127.60 and a 1 year high of $180.91. The company has a debt-to-equity ratio of 2.13, a current ratio of 0.83 and a quick ratio of 0.65.

PepsiCo Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 6th were given a dividend of $1.4225 per share. The ex-dividend date was Friday, June 6th. This represents a $5.69 annualized dividend and a dividend yield of 3.91%. This is a boost from PepsiCo’s previous quarterly dividend of $1.36. PepsiCo’s dividend payout ratio (DPR) is presently 83.68%.

Institutional Investors Weigh In On PepsiCo

A hedge fund recently bought a new stake in PepsiCo stock. Caxton Associates LLP acquired a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 1,673 shares of the company’s stock, valued at approximately $251,000. Institutional investors own 73.07% of the company’s stock.

Analyst Upgrades and Downgrades

PEP has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of PepsiCo in a research report on Thursday. Barclays decreased their price objective on PepsiCo from $135.00 to $132.00 and set an “equal weight” rating for the company in a report on Tuesday. Citigroup cut their price objective on PepsiCo from $170.00 to $160.00 and set a “buy” rating on the stock in a research report on Friday, April 25th. Bank of America decreased their price objective on PepsiCo from $150.00 to $145.00 and set a “neutral” rating on the stock in a research note on Friday, July 11th. Finally, JPMorgan Chase & Co. reduced their price objective on PepsiCo from $150.00 to $139.00 and set a “neutral” rating on the stock in a research report on Thursday, July 10th. One investment analyst has rated the stock with a sell rating, sixteen have assigned a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $158.75.

PepsiCo Company Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.