PepsiCo lowers annual revenue forecast, softer demand and geopolitical tensions weigh

Published On Oct 8, 2024, 12:46 PM

PepsiCo has lowered its annual revenue growth forecast from 4% to a low-single-digit increase due to softer sales and disruptions caused by geopolitical tensions. Despite these challenges, the company reported net revenues of $23.32 billion for the third quarter, which was a slight decline from the previous year and below analyst expectations. Although the company is facing inflationary pressures and changes in consumer spending habits, they maintain a target of at least 8% growth in core constant currency earnings-per-share for the year.

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PepsiCo is confronting significant headwinds from weakened consumer demand and geopolitical issues impacting its international markets. This reduction in revenue forecast suggests a cautious outlook for the company's stock in the near term. Furthermore, declining sales figures and below-expectation performance could lead to further stock price pressure if these trends persist.

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PepsiCo lowers annual revenue forecast, softer demand and geopolitical tensions weigh

Oct 8, 2024, 12:46 PM

In the third quarter, PepsiCo generated $23.32 billion in net revenue, a 0.6% decline from the same period a year ago and below Wall Street estimates of $23.76 billion.

PEP