Pepsi Excels Again but Conagra Brands Disappoints

PepsiCo (PEP:US) lifted its organic revenue guidance for the full year, sending its shares higher on Thursday. The company once again outperformed analyst targets on the back of its strong pricing power.

Pepsi said it now expects its organic revenue to grow 10% year-over-year, up from the prior forecast of 8% and the consensus of 8.1%. The core profit per share forecast is raised by $0.20 to $7.47.

The guidance raise was possible after Pepsi said its sales jumped 10% YoY to $22.32 billion. Core EPS was reported at $2.09, ahead of the Street at $1.96 and $1.86 which was reported for the same period a year ago. 

“We are very pleased with our performance for the second quarter as our business momentum remains strong,” CEO Ramon Laguarta noted.

Pepsi shares have mostly traded sideways in recent weeks as investors focused on the massive tech outperformance. Rep. Daniel Goldman acquired $50,000 - $100,000 worth of PEP shares back in March.

On the other hand, Conagra Brands (CAG:US) saw their shares trade unstable on Thursday after the company missed analyst targets for FQ4 revenue. Organic sales rose just 2.2% YoY, a big miss relative to the expectations of more than 3.9%.

Sean Connolly, president and chief executive officer of Conagra Brands, commented: 

"We anticipate transitioning toward a more normalized operating environment in fiscal 2024 - with easing inflationary pressures and improved supply chain operations - and remain committed to our long-term financial algorithm."

Congressman Michael McCaul went on a selling spree of CAG shares in late 2022. He was selling the stock while it was trading in the $30s, somewhere in line with current levels.