PepsiCo Inc. (NYSE: PEP) has not been living up to its defensive stock nature like rival Coca-Cola Company (NYSE: KO). The beverage snack food giant reported earnings this morning that are heading in a step back toward the right direction.
Pepsi’s third quarter report came to $1.31 EPS versus $1.30 EPS estimates from Thomson Reuters. Revenues rose to $17.58 billion versus estimates of $19.19 billion.
The company attributed international growth and the acquisition of a Russian beverage outfit earlier as the key metrics helping it to beat expectations.
What has been an issue here is that shares of Pepsi were not acting defensive as they are supposed to. The company has said that earnings would be up in the single-digits and this includes a global uncertainty in macroeconomic and consumer trends. Offsetting concerns over commodity prices for the company, Pepsi is on track to have repurchased about $2.5 billion in stock in 2011.
Shares are up 0.5% at $61.26 in the pre-market. To show just how bad things have been, the 52-week range is $58.50 to $71.89. As a comparison, Coca-Cola shares closed at $66.80 yesterday and the 52-week range there is $59.34 to $71.77. Coca-Cola is also indicated up with about two hours before the open.
JON C. OGG