PepsiCo Q2 Sales Projected Higher, But Analysts Flag 'Rocky Turnaround' and Potential Activist Pressure
PEP is trading near its 52-week low of $132.96 (8.5% above the low) on light trading volume (0.3× avg).
Summary
PepsiCo is projected to report Q2 sales of $23.95 billion and adjusted EPS of $2.19, both higher year-over-year, with its results due on Thursday. Despite these projections, analysts are flagging a "rocky turnaround," noting recent trends have come under pressure and expressing skepticism about the company achieving the higher end of its full-year guidance. BNP Paribas analysts specifically suggest activist investor Elliott Investment Management could push for bigger changes this fall if the turnaround struggles persist. Investors will be closely watching the Q2 results for updates on growth strategies.
At the time of this announcement, PEP was trading at $144.21 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $197.1B. The 52-week trading range was $132.96 to $171.48. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.