Jim Cramer: Pepsi's a Winner If You Stay at Home or Not
The consumer staples giant rose over 1.5% after reporting earrings before the opening bell on Tuesday and beating estimates on both the top and bottom line.
Pepsi reported adjusted earnings per share of $1.07, beating Wall Street consensus estimates by 3 cents. Revenue came in at $13.88 billion, exceeding estimates of $13.2 billion.
However, following many other companies, PepsiCo withdrew its 2020 earnings guidance, which had previously called for 4% revenue growth and 7% earnings growth, citing the uncertain environment created by the coronavirus pandemic.
"Despite a strong first quarter, there is still a great deal of uncertainty that exists in relation to COVID-19, including how geographies, retail channels and consumer behaviors will evolve over time," PepsiCo CEO Ramon Laguarta said in an earnings release.
Despite a “no longer applicable” financial outlook, Pepsi still plans to buyback shares and pay a cash dividend.
“With a strong balance sheet, highly cash generative business and ample liquidity, we believe we have adequate flexibility to meet the needs of our business and return cash to shareholders," Laguarta said.
TheStreet founder and ActionAlertsPLUS portfolio manager Jim Cramer named Pepsi among the stocks to own during the coronavirus in his Mad Covid-19 Index on Monday’s edition of Mad Money on CNBC. The index aims to break down the stocks that have the potential to rise on more than hope as markets cope with the continued impact of the coronavirus pandemic.
How does Cramer feel about Pepsi after earnings? Catch his latest take on the stock in the video above.