PepsiCo (PEP) shares lost around 2.25% of its market value at the start of premarket trading on July 11. The point was in moderately weaker demand for its snacks and sodas in its largest market, i.e. North America after average consumer prices on PepsiCo productions were raised by nearly 5%, from mid-April to mid-June, while organic volume (in units of bottles, cans etc) actually became 3% lower.

Revenue volumes at the North America beverages segment were about 30.3% in fiscal 2023 totals, and it has reported revenue of $6.81 billion, compared to $6.76 billion a year ago, which is just an inch below an averagely estimated $6.86 billion. Frito-Lay North America, the company's second largest unit, contributed about 27%, and it has now reported revenue of $5.87 billion, a 0.5% YoY decrease. Some products were recalled at Quaker Oats and Snacks. As a result, the company slightly missed Wall St consensus estimates for Q2 sales. Its net revenue climbed to $22.50 billion in the previous quarter from $22.32 billion (+0.8% Y0Y), while the analyst pool expected it at $22.66 billion on average.

However, PepsiCo's net earnings per share (EPS) rose to $2.28 from $2.09 per share in the same period of 2024, compared to a temporary drop to $1.61 in Q1 2024. The latest number also topped consensus at $2.16 per share. Well, more customers may be opting for smaller packages, because of higher prices, yet the company tries to make better business from each of its packs sold. Thus, PepsiCO CEOs said they projected the full fiscal year 2024 EPS of $8.15 vs the consensus of $8.13, on revenue of $94.31 billion, vs the consensus estimate of $91.06 billion.

It's not that bad, as a matter of fact. Again, they are thinking of an "approximately 4%" growth in organic revenue, while the company's official previous forecast was “at least 4%”, and so we don't feel the big difference here. “For the balance of the year, we will further elevate and accelerate our productivity initiatives and make disciplined commercial investments in the marketplace to stimulate growth", an official statement said. A price dive below $160 per share does not seem as a long-lasting trouble, in this regard. However, a confirmed reverse breakdown of the technical support between $163 and $165 or other expressed bullish sign is necessary before new buy positions can be considered seriously.