PepsiCo earnings: Company cuts 2024 guidance as North America sales lag expectations

Published On Oct 8, 2024, 8:13 AM

PepsiCo reported lower than expected sales for the third quarter of 2024, leading the company to cut its full-year revenue growth forecast. The organic revenue growth is now expected to be in the low-single digits instead of the previously projected 4%. This decline is attributed to tougher market conditions in North America, particularly impacting Frito-Lay and Quaker Foods segments, while international sales also fell short of expectations. Despite the lower revenue forecast, PepsiCo expects to achieve an 8% increase in earnings per share, underscoring its operational strength in a challenging environment.

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Stock Forecasts

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Negative

Given the lowered growth outlook and the continuing pressures in the North American market, particularly in snacks and beverages, PepsiCo's stock (PEP) is likely to face downward pressure in the near term. The company's efforts to provide more value to consumers and expand into healthier product lines may not be sufficient to offset the current sales challenges.

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