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🍿 Snacking It Up - Pepsi Crushes Q3 Earnings
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Thursday Close) 3,380.80 +17.80 (0.53%)
NASDAQ (Thursday Close) 11,326.51 +159.00 (1.42%)
FTSE 100 (5 PM IST) 5834.61 -44.84 (0.76%)
NIFTY 50 (Today's Close) 11,416.95 +169.40 (1.51%)
USDINR (5 PM IST) 73.31 (1 Year +2.94%)
PepsiCo Smashes Q3 Analyst Forecasts on All Fronts, Fueled by Higher Snack Sales.
PepsiCo grew both its top line and bottom line as consumers stayed home during the pandemic and gorged on snacks.
What Happened? PepsiCo forecast solid full-year profits while comfortably beating analyst estimates for Q3. Pandemic-weary consumers munched on snacks such as Lays while staying home and pushed PepsiCo’s top line higher.
EPS: $1.66 vs. $1.49 expected, up 5.8% from the same time last year.
Revenues: $18.09B vs. $17.23B expected, up 5.3% from the same time last year.
The company delivered organic revenue growth in the third quarter of 4.2%. Based on YTD performance and outlook for the remainder of the year, PepsiCo updated its full-year 2020 guidance. It now expects to deliver 4% organic revenue growth and approximately $5.50 in core earnings per share for the year.
The food and beverage giant said both its Quaker Foods and Frito-Lay segments reported 6% organic growth. Quaker’s pasta, and macaroni & cheese dishes posted double-digit growth while Frito-Lay’s Doritos, Tostitos, and Cheetos “ran out of shelves” during the quarter. The demand was high enough that the company struggled to keep up with the demand for its new Cheetos macaroni and cheese.
The North America beverage segment reported 3% organic growth, driven by Bubly, Lipton, and Starbucks licensed products, all of which saw double-digit growth. On the international front, the company reported 4% organic growth fueled by increasing demand for snacks. PepsiCo sees local pandemic-related restrictions not impacting business as dramatically as they did in April and May.
Market Reaction: Market Reaction: Pepsi shares are up 1.4% YTD. The stock closed at $140.80, up 1.59%
PepsiCo Snapshot 📈
PEP $140.80 +2.20 (+1.59%)
Analyst Rating (20 Ratings) BUY 55% HOLD 45% SELL 0%
Positive POTUS: President Trump, first lady Melania test positive for coronavirus
Economic Boost: House passes $2.2 trillion Democratic coronavirus stimulus bill
Informed Decision: Google commits $1 billion in licensing payments to news publishers over next 3 years (GOOG +1.39%)
Later Today 🕒
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Fun Fact of The Day 🌞
The word “y’all” dates back to 1631
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