What PepsiCo's Earnings Mean for Mutual Fund Investors (PEP)

Welcome to MutualFunds.com

Please help us personalize your experience and select the one that best describes you.

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission

We hope you enjoy your experience

Channels

Fixed income news, reports, video and more.

Municipal bonds news, reports, video and more.

Practice management news, reports, video and more.

Portfolio management news, reports, video and more.

Retirement news, reports, video and more.

Learn from industry thought leaders and expert market participants.

Find the latest content and information here about the 2019 Charles Schwab Impact Conference.

Advisors

Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.

Content focused on helping financial advisors build successful client relationships and grow their business.

Content geared towards helping financial advisors build better client portfolios.

Get insights on the industry trends and investment news from leading fund managers and experts.

What PepsiCo's Earnings Mean for Mutual Fund Investors (PEP)

PepsiCo company logo
Before the opening bell on Wednesday, PepsiCo (PEP) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.

Inside PEP’s Results

Earnings

The company reported earnings of $1.31 billion, or 87 cents per share, down from $1.74 billion, or $1.12 per share, a year ago. Adjusted earnings were $1.12 per share – above analysts’ estimate of $1.08 per share.

Revenue
Revenue dropped to $19.948 billion from $20.12 billion. Analysts expected to see revenue of $19.66 billion.

Outlook
PepsiCo expects to see earnings growth of 7% for FY2015. Analysts expect to see EPS of $4.75.

Snack Business Boosting Profits

While PepsiCo was negatively impacted by the strengthening dollar and restructuring charges, these expenses were offset by stronger sales of Frito-Lay snacks. From a valuation standpoint, PEP is trading at 21x 2015 earnings estimates, which is a bit pricey for investors, considering its flat revenue growth. Despite its sluggish sales, PEP may be an attractive stock for income-focused investors with its 2.87% dividend yield. With its earnings announcement today, the company announced that it will boost its dividend payout by 7.3%.

Mutual Funds to Watch

Investors interested in PEP may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in PEP.

The Bottom Line

The funds listed above allow investors to gain exposure to PEP while remaining diversified. Investors interested in PEP may also be interested in Coca-Cola (KO) or Dr Pepper Snapple (DPS).

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next

PepsiCo company logo

What PepsiCo's Earnings Mean for Mutual Fund Investors (PEP)

Before the opening bell on Wednesday, PepsiCo (PEP) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.

Inside PEP’s Results

Earnings

The company reported earnings of $1.31 billion, or 87 cents per share, down from $1.74 billion, or $1.12 per share, a year ago. Adjusted earnings were $1.12 per share – above analysts’ estimate of $1.08 per share.

Revenue
Revenue dropped to $19.948 billion from $20.12 billion. Analysts expected to see revenue of $19.66 billion.

Outlook
PepsiCo expects to see earnings growth of 7% for FY2015. Analysts expect to see EPS of $4.75.

Snack Business Boosting Profits

While PepsiCo was negatively impacted by the strengthening dollar and restructuring charges, these expenses were offset by stronger sales of Frito-Lay snacks. From a valuation standpoint, PEP is trading at 21x 2015 earnings estimates, which is a bit pricey for investors, considering its flat revenue growth. Despite its sluggish sales, PEP may be an attractive stock for income-focused investors with its 2.87% dividend yield. With its earnings announcement today, the company announced that it will boost its dividend payout by 7.3%.

Mutual Funds to Watch

Investors interested in PEP may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in PEP.

The Bottom Line

The funds listed above allow investors to gain exposure to PEP while remaining diversified. Investors interested in PEP may also be interested in Coca-Cola (KO) or Dr Pepper Snapple (DPS).

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next