PepsiCo (PEP) has trimmed its earnings forecast, citing uncertainties around tariffs and consumer spending. Its stock took a hard tumble and the overall macroeconomic condition continues to hamper its value. Despite increasing supply chain costs due to tariffs which have influenced the cut in annual profit outlook, it reported a net income of US$1.8 billion in Q1 2025. However, supply chain costs, lower expectations, and a reduction in price targets post Q1 results, have pushed PepsiCo to a challenging market position. Although revenue surpassed expectations despite an EPS miss, the company has issued a cautious guidance. PepsiCo's focus is shifting away from artificial dyes and the meeting of annual shareholders took a digital format. A series of price target adjustments by financial firms further indicate the firm's difficult economic phase.
The dividend king status of the company is now being questioned. The company faces rising tariff concerns which weigh on earnings but pulled through the volatility with robust revenues. Despite lower than expected earnings, revenue beat expectations standing at $17.92B. However, mixed results and a trimmed forecast has stirred the decision of whether to buy, sell, or hold PepsiCo shares.
Pepsico PEP News Analytics from Tue, 25 Mar 2025 07:00:00 GMT to Sat, 26 Apr 2025 16:09:22 GMT - Rating -7 - Innovation -4 - Information 4 - Rumor -5
