Is PepsiCo Losing its Fizz?
Shares in PepsiCo Inc (N:PEP) rose following the release of its first quarter profits.
Causing concern amongst investors was the news that quarterly sales fell 2.9 percent on a year on year basis, taking the total revenue to $11.86 billion. The decline also marked the sixth straight quarter of falls for the drinks giant as the strong US dollar was causing weak revenues in key markets such as Latin America and Europe.
The first quarter revenues, although in decline, were actually better than had been anticipated. Analysts had been expecting revenue of $11.85 billion, whilst the EPS (earnings per share) also surpassed market expectations. The soft drink company reported an EPS of $0.89, which was higher than the EPS of $0.81 which had been forecast by analysts.
Shares in PepsiCo Inc (NYSE:PEP)jumped 0.96% in the market following the release of the data. The increase came despite a risk off sentiment sweeping the markets and hitting global equities as crude oil continued to plummet and data from China highlighted the fragility of the global economic recovery.
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