Is PepsiCo Stock a Buy Heading Into Earnings?
PepsiCo (NASDAQ: PEP) is expected to release its third-quarter results on Oct. 3 before the market opens. With the stock rising 22% so far in 2019, investors may be wondering whether now is a good time to buy more shares, or to cash out. Let's look at how the stock has done lately and whether it could be poised for another good quarter.
In July, the company reported a strong second quarter that saw it beating expectations for both revenue and earnings. It credits its success to healthier products, like its Bubly brand of beverages, and being able to find ways to continue to grow -- reasons it's optimistic. However, beating expectations is nothing new for PepsiCo, as only once during the past 14 quarterly reports has the company reported earnings that were not better than expected. Perhaps that's why the stock didn't get much of a boost from its Q2 results: Beating expectations may simply be par for the course.
PepsiCo's Frito-Lay and beverages segments made up $9.3 billion in sales, well over half (57%) of the $16.4 billion that the company's operations generated last quarter. North America is also the source of a lot of the growth. Latin American, which posted just $1.9 billion in sales in Q2, only grew at a rate of 2.3%. The Asia, Middle East, and North Africa segment, meanwhile, contributed just $1.6 billion in sales and was down from the previous year.
Source Fool.com
