With
PepsiCo is a global leader in salty snacks and non-alcoholic beverages, with a strong dividend yield of over 4%, and it is significantly undervalued. Despite challenges like tariffs and economic uncertainty, PepsiCo's robust advertising, marketing, and strategic acquisitions support its long-term growth and market leadership. PepsiCo's dividend safety is acceptable, with a 53-year growth streak, though the payout ratio is slightly higher than desired, the growth streak should continue.
PepsiCo's NASDAQ: PEP stock price is under pressure in H1 2025 and may move below the lows set in late April. The technical action is weak.
Market uncertainty is high right now thanks to economic and geopolitical issues. Since the start of the year the S&P 500 index (^GSPC 0.74%) has fallen around 8% or so, but it had fallen by around 15% at one point.
PepsiCo's stock continues to look lower to me after mixed Q1 results, highlighting ongoing volatility and uncertainties impacting the company's performance and dividend yield. Despite a 1.8% YoY revenue decline, PepsiCo beat market expectations, but CEO Ramon Laguarta warns of increased supply chain costs and global trade uncertainties. PepsiCo's reduced EPS outlook and focus on healthier foods signal long-term challenges, necessitating portfolio reinvention and strategic M&A to sustain growth.
PepsiCo plans to speed up a move away from artificial dyes in its US food business, its CEO said, amid a presidential effort to “Make America Healthy Again.”
PEP's Q1 results reflect resilience amid global challenges, rising trade-related costs and macro uncertainty, which are expected to increase supply-chain costs ahead.
PepsiCo, Inc. (NASDAQ:PEP ) Q1 2025 Earnings Conference Call April 24, 2025 8:15 AM ET Company Participants Ravi Pamnani - Senior Vice President of Investor Relations Ramon Laguarta - Chairman and Chief Executive Officer Jamie Caulfield - Executive Vice President and Chief Financial Officer Conference Call Participants Bonnie Herzog - Goldman Sachs Steve Powers - Deutsche Bank Filippo Falorni - Citi Dara Mohsenian - Morgan Stanley Andrea Teixeira - J.P. Morgan Lauren Lieberman - Barclays Bryan Spillane - BofA Michael Lavery - Piper Sandler Kaumil Gajrawala - Jefferies Peter Grom - UBS Christopher Carey - Wells Fargo Securities Kevin Grundy - BNP Paribas Robert Moskow - TD Cowen Charlie Higgs - Redburn Atlantic Operator Good morning, and welcome to PepsiCo's 2025 First Quarter Earnings Question-and-Answer Session.
PepsiCo Inc (NASDAQ:PEP, ETR:PEP) has slashed its full-year profit outlook on higher expected supply chain costs stemming from tariffs, elevated macroeconomic volatility and a subdued consumer environment. Along with reporting its first quarter earnings, the company said it now expects constant currency earnings per share to be even with the previous year, down from its earlier forecast of mid-single-digit growth.
PepsiCo (PEP) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.50 per share. This compares to earnings of $1.61 per share a year ago.
PepsiCo (PEP) shares slipped in premarket trading Thursday after the beverage and snack food giant lowered its full-year earnings outlook because of tariffs.
The company posted a quarterly profit of $1.83 billion, or $1.33 a share, compared with $2.04 billion, or $1.48 a share, in the same period a year earlier.