PepsiCo Warns Iran War, Gas Prices Are Hurting Snack Sales; Stock Drops 4.8%
PEP is trading near its 52-week low of $132.96 (1.9% above the low).
Summary
PepsiCo's Q2 revenue beat estimates at $24.18B, but CEO Laguarta warned that the Iran war and high gas prices are causing consumers to buy fewer snacks, slowing purchase conversions. The stock fell 4.8% as the outlook overshadowed the beat. International strength offset continued North American weakness, and the company plans further price cuts and brand restaging. CFO Schmitt expects gradual North America improvement, with tariff refunds helping to offset higher commodity costs. Full-year guidance was maintained: 4-6% adjusted EPS growth and 2-4% organic revenue growth.
At the time of this announcement, PEP was trading at $135.48 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $185.2B. 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.