PepsiCo shares are hovering around a one-year low, trading at a forward P/E multiple of about 15.4 times, the lowest in more than a decade. The decline follows a steady sell-off after second quarter earnings, with shares down about 5% since the company reported on July 9. Revenue rose 6.4% year over year to $24.2 billion, but North American snack volumes were flat and beverage volumes fell 4%, while price cuts on brands like Lay's and Doritos pressured margins. Management maintained its full-year outlook for 2% to 4% organic revenue growth and 4% to 6% core constant-currency EPS growth, but warned that North American recovery may take longer. Evercore ISI analyst Robert Ottenstein noted significant investor skepticism and sees the stock in a $135 to $145 trading range until definitive US improvement.
PepsiCo IncNorth American snack volumes flat and beverage volumes down 4%, with price cuts pressuring margins.