How PepsiCo’s Fiscal 3Q17 Results Impacted Its Stock
Impact of 3Q17 results
PepsiCo (PEP) stock rose 0.20% to $109.34 on October 4, 2017, the day the company announced its results for fiscal 3Q17, which ended on September 9, 2017. As we’ve seen in the previous parts of this series, the company beat analysts’ earnings estimate but lagged revenue expectations.
Interested in DPS? Don't miss the next report.
Receive e-mail alerts for new research on DPS
On a YTD (year-to-date) basis, PepsiCo stock has risen 5.6% as of October 5, 2017. The stocks of nonalcoholic beverage peers Coca-Cola (KO), Dr Pepper Snapple (DPS), and Monster Beverage (MNST) have returned 9.8%, -3.0%, and 24.9%, respectively, on a YTD basis.
With the exception of Monster Beverage, major nonalcoholic beverage peers have underperformed the S&P 500 Index on a YTD basis. As of October 5, 2017, the S&P 500 Index has risen 14.0% since the start of 2017.
The Consumer Staples Select Sector SPDR ETF (XLP), which has 8.8% exposure to PepsiCo, has risen 5.1% YTD.
PepsiCo is a dividend aristocrat, which is a term used for companies that have increased their dividends at least 25 consecutive years. In May 2017, PepsiCo raised its annualized dividend by 7.0% to $3.22 per share from $3.01 per share. That marked the 45th straight year of dividend increases.
As of October 5, 2017, PepsiCo’s dividend yield was 2.9%. The dividend yields of Coca-Cola and Dr Pepper Snapple were 3.2% and 2.6%, respectively, as of the same date. Monster Beverage currently doesn’t distribute dividends.
We’ll look at PepsiCo’s valuation in the next part of this series.