Erste Group Bank Reduces Earnings Estimates for PepsiCo

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Erste Group Bank dropped their FY2027 earnings per share estimates for PepsiCo in a research note issued to investors on Friday, June 5th. Erste Group Bank analyst S. Lingnau now anticipates that the company will earn $9.14 per share for the year, down from their previous forecast of $9.15. The consensus estimate for PepsiCo’s current full-year earnings is $8.63 per share.

Several other analysts have also issued reports on PEP. Royal Bank Of Canada cut their target price on PepsiCo from $165.00 to $163.00 and set a “sector perform” rating for the company in a research note on Thursday, April 9th. TD Cowen boosted their price objective on PepsiCo from $162.00 to $165.00 and gave the company a “hold” rating in a research report on Friday, February 20th. Deutsche Bank Aktiengesellschaft boosted their price objective on PepsiCo from $169.00 to $173.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Rothschild & Co Redburn boosted their price objective on PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Finally, BNP Paribas Exane boosted their price objective on PepsiCo from $191.00 to $195.00 and gave the company an “outperform” rating in a research report on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $169.58.

PepsiCo Stock Up 1.1%

Shares of PEP opened at $144.32 on Thursday. The firm has a market cap of $197.25 billion, a P/E ratio of 22.66, a P/E/G ratio of 2.59 and a beta of 0.35. The stock has a 50 day simple moving average of $151.55 and a two-hundred day simple moving average of $152.44. 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 has a 1 year low of $127.60 and a 1 year high of $171.48.

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

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be issued a dividend of $1.48 per share. This is a boost from PepsiCo’s previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Friday, June 5th. PepsiCo’s dividend payout ratio is currently 92.94%.

Hedge Funds Weigh In On PepsiCo

A number of institutional investors have recently added to or reduced their stakes in PEP. Evergreen Advisors LLC bought a new position in PepsiCo in the first quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in PepsiCo in the fourth quarter worth $26,000. Swiss RE Ltd. bought a new position in PepsiCo in the fourth quarter worth $28,000. MH & Associates Securities Management Corp ADV bought a new position in PepsiCo in the fourth quarter worth $29,000. Finally, Imprint Wealth LLC bought a new position in PepsiCo in the third quarter worth $31,000. Institutional investors own 73.07% of the company’s stock.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo expanded its autonomous logistics push by deploying driverless trucks to deliver chips and drinks across Texas, Arizona, and Arkansas, signaling potential cost savings and supply-chain efficiency gains. PepsiCo and Gatik launch commercial driverless trucking deployment
• Positive Sentiment: Reports that PepsiCo’s driverless Doritos fleet is already operating at scale and outpacing Tesla’s robotaxi rollout may be viewed as a win for PepsiCo’s innovation image and operational execution. PepsiCo’s driverless Doritos fleet outpaces Tesla’s robotaxis in North Texas
• Positive Sentiment: PepsiCo and Gatik said they launched the largest commercial driverless trucking deployment to date, which could boost investor confidence in PepsiCo’s logistics modernization and long-term margins. PepsiCo and Gatik launch commercial driverless trucking deployment
• Positive Sentiment: PepsiCo launched “House of Treats,” a new experiential beverage platform aimed at premium away-from-home channels, suggesting new growth opportunities beyond core soda and snacks. PEPSI® GLOBAL LAUNCHES PEPSI ‘HOUSE OF TREATS’ A NEW AWAY FROM HOME EXPERIENTIAL BEVERAGE PLATFORM
• Positive Sentiment: Several research-style articles argued PepsiCo remains a strong long-term growth or rebound candidate, which can reinforce bullish sentiment around the stock. Why PepsiCo (PEP) is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Analysts’ average recommendation remains “Hold,” indicating Wall Street is constructive but not aggressively bullish on the name right now. PepsiCo, Inc. (NASDAQ:PEP) Given Average Recommendation of “Hold” by Analysts
• Neutral Sentiment: PepsiCo’s recent stock pullback has prompted valuation-focused commentary, suggesting some investors are weighing whether the shares have become cheaper after the decline. Is It Time To Reconsider PepsiCo (PEP) After The Recent 9% Share Price Pullback

PepsiCo Company Profile

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.