Will Inflation Take the Pop Out of PepsiCo Stock?
Considering the increased talk over the past several months of economic slowdowns, inflationary headwinds, and worries about a full-blown recession, it's encouraging that international snack and beverage manufacturer PepsiCo (NASDAQ: PEP) has managed relatively well in 2022. Interested investors are looking forward to getting an updated status report when PepsiCo releases its fiscal 2022 second-quarter earnings report before the markets open on Tuesday, July 12.
PepsiCo has so far managed to sustain profitability amid rising labor, transportation, and raw materials costs. But with inflation rates rising so quickly in the past several months, investors will need to pay attention to whether PepsiCo can keep managing rising costs in the near term to maintain its bottom line.
Organic revenue growth jumped by 9.3% year over year for PepsiCo in its fiscal first quarter (which ended March 19). The better-than-expected first-quarter results led management to raise the revenue forecast for the rest of the year. PepsiCo now expects revenue growth of 8% for the year. That was up by two percentage points from the previously forecast 6% growth for fiscal 2022.
Source Fool.com
