FY2027 EPS Estimates for PepsiCo Cut by Erste Group Bank

PepsiCo, Inc. (NASDAQ:PEP) – Equities researchers at Erste Group Bank lowered their FY2027 earnings estimates for shares of PepsiCo in a research note issued on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now anticipates that the company will earn $9.11 per share for the year, down from their prior forecast of $9.14. The consensus estimate for PepsiCo’s current full-year earnings is $8.62 per share.

A number of other equities research analysts have also recently commented on the stock. Wall Street Zen cut shares of PepsiCo from a “buy” rating to a “hold” rating in a research report on Saturday, April 18th. Rothschild & Co Redburn upped their price target on PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. HSBC increased their price objective on PepsiCo from $175.00 to $176.00 and gave the company a “hold” rating in a report on Friday, April 17th. Bank of America dropped their target price on PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a research note on Thursday, June 25th. Finally, JPMorgan Chase & Co. upped their target price on PepsiCo from $172.00 to $178.00 and gave the company an “overweight” rating in a research report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, PepsiCo currently has an average rating of “Hold” and an average target price of $166.80.

PepsiCo Trading Down 2.4%

Shares of NASDAQ PEP opened at $135.40 on Wednesday. PepsiCo has a 1-year low of $132.47 and a 1-year high of $171.48. The business has a fifty day moving average price of $147.56 and a 200 day moving average price of $151.91. The stock has a market capitalization of $185.06 billion, a P/E ratio of 21.26, a price-to-earnings-growth ratio of 2.80 and a beta of 0.35. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, topping analysts’ consensus estimates of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The company had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. During the same period in the prior year, the firm earned $1.48 earnings per share. The firm’s revenue for the quarter was up 8.5% compared to the same quarter last year.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, June 5th were issued a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 4.4%. This is a boost from PepsiCo’s previous quarterly dividend of $1.42. The ex-dividend date of this dividend was Friday, June 5th. PepsiCo’s dividend payout ratio is 92.94%.

Institutional Investors Weigh In On PepsiCo

Several hedge funds have recently added to or reduced their stakes in the business. Evergreen Advisors LLC purchased a new position in shares of PepsiCo during the 1st quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of PepsiCo in the fourth quarter worth about $26,000. Swiss RE Ltd. acquired a new stake in PepsiCo during the fourth quarter worth about $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo during the fourth quarter worth about $29,000. Finally, Imprint Wealth LLC purchased a new position in PepsiCo during the third quarter valued at approximately $31,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investor sentiment was lifted by bullish commentary from 24/7 Wall St., which argued PepsiCo could have more than 20% upside based on a price target above current levels and called the stock a buy. Pepsi Price Prediction: The Case for 20%+ Upside
• Positive Sentiment: Unusual options activity pointed to rising trader interest, with investors buying a large volume of PepsiCo call options, often interpreted as a bullish signal. Investors Buy Large Volume of PepsiCo Call Options (NASDAQ:PEP)
• Positive Sentiment: PepsiCo expanded its manufacturing footprint in India by commissioning a second flavor plant in Ujjain, a long-term growth investment that could support supply and regional demand. PepsiCo India opens ₹1,266 cr flavour manufacturing facility in Ujjain
• Neutral Sentiment: Analysts are heading into PepsiCo’s July 9 earnings release expecting higher Q2 earnings and revenue, but this is still a forecast rather than a reported result. PepsiCo Likely To Report Higher Q2 Earnings
• Neutral Sentiment: PepsiCo is also facing a trademark dispute involving “Rise” and “Mtn Dew Rise” at the U.S. Supreme Court, which adds legal uncertainty but is not yet a confirmed financial hit. US Supreme Court takes up Pepsi ‘Mtn Dew Rise’ trademark dispute
• Negative Sentiment: Competition in the soda market remains intense, with Coca-Cola highlighted as having a Freestyle-machine advantage and launching an exclusive new soda flavor at Wingstop, underscoring pressure on PepsiCo’s beverage business. Coca-Cola launches exclusive soda flavor at fast-food giant

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.