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Interpreting PepsiCo (PEP) International Revenue Trends
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Did you analyze how PepsiCo (PEP - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this food and beverage company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing PEP's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $22.5 billion, showing rise of 0.8%. We will now explore the breakdown of PEP's overseas revenue to assess the impact of its international operations.
Exploring PEP's International Revenue Patterns
Latin America accounted for 13.5% of the company's total revenue during the quarter, translating to $3.05 billion. Revenues from this region represented a surprise of -2.73%, with Wall Street analysts collectively expecting $3.13 billion. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $2.07 billion (11.3%) and $2.86 billion (12.8%) to the total revenue, respectively.
Of the total revenue, $3.52 billion came from Europe during the last fiscal quarter, accounting for 15.6%. This represented a surprise of +1.05% as analysts had expected the region to contribute $3.48 billion to the total revenue. In comparison, the region contributed $1.94 billion, or 10.6%, and $3.43 billion, or 15.4%, to total revenue in the previous and year-ago quarters, respectively.
Asia Pacific, Australia and New Zealand and China Region generated $1.1 billion in revenues for the company in the last quarter, constituting 4.9% of the total. This represented a surprise of -1.13% compared to the $1.12 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific, Australia and New Zealand and China Region accounted for $1.06 billion (5.8%), and in the year-ago quarter, it contributed $1.13 billion (5.1%) to the total revenue.
During the quarter, Africa, Middle East and South Asia contributed $1.59 billion in revenue, making up 7.1% of the total revenue. When compared to the consensus estimate of $1.54 billion, this meant a surprise of +3.28%. Looking back, Africa, Middle East and South Asia contributed $1.04 billion, or 5.7%, in the previous quarter, and $1.57 billion, or 7%, in the same quarter of the previous year.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for PepsiCo, as projected by Wall Street analysts, is expected to reach $24.18 billion, reflecting an increase of 3.1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Latin America is anticipated to contribute 14% or $3.38 billion, Europe 16.1% or $3.89 billion, Asia Pacific, Australia and New Zealand and China Region 5.1% or $1.24 billion and Africa, Middle East and South Asia 6.7% or $1.63 billion.
For the entire year, the company's total revenue is forecasted to be $94.17 billion, which is an improvement of 3% from the previous year. The revenue contributions from different regions are expected as follows: Latin America will contribute 13.8% ($13.03 billion), Europe 14.7% ($13.87 billion), Asia Pacific, Australia and New Zealand and China Region 5.2% ($4.93 billion) and Africa, Middle East and South Asia 6.6% ($6.17 billion) to the total revenue.
Final Thoughts
The dependency of PepsiCo on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Assessing PepsiCo's Stock Price Movement in Recent Times
The stock has witnessed an increase of 1.6% over the past month versus the Zacks S&P 500 composite's an increase of 3.8%. In the same interval, the Zacks Consumer Staples sector, to which PepsiCo belongs, has registered an increase of 1.7%. Over the past three months, the company's shares saw a decrease of 4.5%, while the S&P 500 increased by 10%. In comparison, the sector experienced an increase of 4.7% during this timeframe.
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Interpreting PepsiCo (PEP) International Revenue Trends
Did you analyze how PepsiCo (PEP - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this food and beverage company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing PEP's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $22.5 billion, showing rise of 0.8%. We will now explore the breakdown of PEP's overseas revenue to assess the impact of its international operations.
Exploring PEP's International Revenue Patterns
Latin America accounted for 13.5% of the company's total revenue during the quarter, translating to $3.05 billion. Revenues from this region represented a surprise of -2.73%, with Wall Street analysts collectively expecting $3.13 billion. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $2.07 billion (11.3%) and $2.86 billion (12.8%) to the total revenue, respectively.
Of the total revenue, $3.52 billion came from Europe during the last fiscal quarter, accounting for 15.6%. This represented a surprise of +1.05% as analysts had expected the region to contribute $3.48 billion to the total revenue. In comparison, the region contributed $1.94 billion, or 10.6%, and $3.43 billion, or 15.4%, to total revenue in the previous and year-ago quarters, respectively.
Asia Pacific, Australia and New Zealand and China Region generated $1.1 billion in revenues for the company in the last quarter, constituting 4.9% of the total. This represented a surprise of -1.13% compared to the $1.12 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific, Australia and New Zealand and China Region accounted for $1.06 billion (5.8%), and in the year-ago quarter, it contributed $1.13 billion (5.1%) to the total revenue.
During the quarter, Africa, Middle East and South Asia contributed $1.59 billion in revenue, making up 7.1% of the total revenue. When compared to the consensus estimate of $1.54 billion, this meant a surprise of +3.28%. Looking back, Africa, Middle East and South Asia contributed $1.04 billion, or 5.7%, in the previous quarter, and $1.57 billion, or 7%, in the same quarter of the previous year.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for PepsiCo, as projected by Wall Street analysts, is expected to reach $24.18 billion, reflecting an increase of 3.1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Latin America is anticipated to contribute 14% or $3.38 billion, Europe 16.1% or $3.89 billion, Asia Pacific, Australia and New Zealand and China Region 5.1% or $1.24 billion and Africa, Middle East and South Asia 6.7% or $1.63 billion.
For the entire year, the company's total revenue is forecasted to be $94.17 billion, which is an improvement of 3% from the previous year. The revenue contributions from different regions are expected as follows: Latin America will contribute 13.8% ($13.03 billion), Europe 14.7% ($13.87 billion), Asia Pacific, Australia and New Zealand and China Region 5.2% ($4.93 billion) and Africa, Middle East and South Asia 6.6% ($6.17 billion) to the total revenue.
Final Thoughts
The dependency of PepsiCo on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Currently, PepsiCo holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing PepsiCo's Stock Price Movement in Recent Times
The stock has witnessed an increase of 1.6% over the past month versus the Zacks S&P 500 composite's an increase of 3.8%. In the same interval, the Zacks Consumer Staples sector, to which PepsiCo belongs, has registered an increase of 1.7%. Over the past three months, the company's shares saw a decrease of 4.5%, while the S&P 500 increased by 10%. In comparison, the sector experienced an increase of 4.7% during this timeframe.