Before-the-Bell Earnings Wrap: PEP, BAC, BLK

NEW YORK (TheStreet) -- PepsiCo (PEP), Bank of America (BAC) and BlackRock (BLK) each reported before market open on Wednesday.

PepsiCo reported third-quarter net income of $1.91 billion, or $1.23 a share, compared to $1.9 billion, or $1.21 a share, in the year-ago quarter. Earnings per share of $1.24 beat expectations by 7 cents.

"PepsiCo has delivered double-digit core constant currency earnings per share growth year to date, despite ongoing macro-economic volatility in many markets," said CEO Indra Nooyi in a statement.

In pre-market trading, PepsiCo shares are up 0.63% to $81.11.

TheStreet Ratings team rates PepsiCo Inc as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate PepsiCo Inc (PEP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."


Bank of America reported third-quarter net income of $2.5 billion compared to $340 million in the year-ago quarter, on revenue of $21.7 billion compared to $20.6 billion for the year earlier. An improving loan portfolio saw provision for credit losses lower to $296 million compared to $1.8 billion a year earlier.

"We saw good loan growth, improved credit quality and record deposit balances," said CEO Brian Moynihan in a statement. "The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that."

Shares have gained 0.63% to $14.33 in pre-market trading.

TheStreet Ratings team rates Bank of America Corp as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate Bank of America Corp (BAC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."


BlackRock reported third-quarter net income of $730 million, or $4.21 a share, compared to $642 million, or $3.65 a share, in the year-ago quarter, on revenue of $2.47 billion, up 7% from a year earlier. Earnings per share was $3.88 a share, on par with analyst expectations.

Shares are 0.35% higher to $283.25 in pre-market trading.

TheStreet Ratings team rates BlackRock Inc as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BlackRock Inc (BLK) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Written by Keris Alison Lahiff.

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