145.90 +0.05 (0.03%)
After hours: 5:14PM EST
|Bid||145.60 x 800|
|Ask||146.00 x 1000|
|Day's Range||144.80 - 145.92|
|52 Week Range||114.21 - 147.20|
|Beta (5Y Monthly)||0.52|
|PE Ratio (TTM)||28.05|
|Forward Dividend & Yield||3.82 (2.63%)|
|Ex-Dividend Date||Mar 04, 2020|
|1y Target Est||N/A|
It’s taken Blend more than $300 million in venture funding, about 400 employees — and, for CEO Nima Ghamsari, a whole lot of Diet Mountain Dew — to build the mortgage fintech that now counts Wells Fargo and U.S. Bank among its clients. Ghamsari says he’s developed quite the taste for the highly caffeinated beverage over the past five years as he’s built the company. “Did you hear that Diet Mountain Dew is sponsoring me?” Ghamsari told me and a couple bankers attending a company reception this week.
Bitcoin has tiptoed back above $10,000, from $4,000 a year ago, and I have two questions. Last spring, I wrote that conditions are perfect for a flight to nonsense, with growth scarce and the Federal Reserve again cutting interest rates, and that Bitcoin would be the bellwether. U.S. stock indexes have shot higher since then, which I wouldn’t call a bubble or meltup just yet.
(Bloomberg) -- As Asia-Pacific president of Dow Chemical Co., one of the world’s biggest producers of plastics and chemicals, Jon Penrice has 100 billion reasons to recycle.“About 8 million tons of plastics are going into the ocean annually,” he said in an interview. “If you look at plastic packaging, around 95% is not being recycled each year which is $100 billion worth of plastic, and that’s valuable for entrepreneurs.”At the center of the effort is Asia, which consumes almost half of the world’s plastic packaging, according to BloombergNEF, and imports even more waste from the U.S. and Europe. Solutions -- such as Indian vending machines that turn plastic bottles into polyester, and researchers in Singapore who are working out ways to clean up oil spills using the waste -- will be needed to meet demand for recycled plastics that’s forecast to rise faster than supply.The biggest challenge to the transition is to make recycled plastics at a price and quality that are competitive. Virgin plastic is derived from crude oil and is closely linked to the global oil price. Because the cost of recycled plastic is more stable, it becomes relatively more expensive when crude prices fall.See also: China Upended the Politics of Plastic and the World Is Still ReelingThe complexity of sorting different types of plastic is another hurdle, according to Penrice, as well as dealing with waste at source rather than producing a lot of carbon emissions by sending it half way around the world.An estimated $80 billion-$120 billion of value is lost because of packaging that goes into the environment, said Navneet Chadha, principal operations officer at the World Bank’s International Finance Corp., which helps fund private sector investment in developing countries. “We have to think of used plastic as a resource, not as a waste.”See also: World Seen Struggling to Recycle Even 50% of Its Plastic WasteBut Chadha cautioned that standards for recycled products need to be developed to avoid “unintended consequences”. Using plastic in road construction, for example, needs to be evaluated further as microplastics may be generated as the road decays, he said.Here are some of the ways plastic is being recycled in Asia:Traditional RecyclingPlastic waste is traditionally reused by collecting and sorting refuse and then melting it, a process known as mechanical recycling. Part of the problem is that a lot of garbage is tainted with food or chemicals and can’t cheaply be turned into high quality raw materials.“The biggest challenge is quality of recycled plastic,” said Jean-Marc Boursier, chief operating officer of SUEZ Group, one of the world’s largest recycling companies. “Major consumer goods companies like Danone, Pepsi or Coca Cola will not buy recycled plastic unless they are convinced that the quality is as good as virgin plastic.”SUEZ has nine plants globally that can turn a combined 500,000 tons of waste plastic into 150,000 tons of polymers, used to make shampoo bottles, car interiors and other products. The company is opening its first Asian plastic recycling plant this year in Thailand.Boursier suggests pricing the carbon savings into the recycled plastic price to take into account the environmental benefit.AerogelsA team of researchers at the National University of Singapore has developed a way to convert low-value plastic waste into aerogels -- ultra-light materials used in everything from diaper fillings to cleaning up oil spills.Around eight average plastic water bottles produce a square meter sheet of aerogel using the method, said Duong Hai Minh, an associate professor at the university who worked on the project. The researchers have sold commercial production rights to firms including Bronxculture in Singapore and DPN Aerogel JSC in Vietnam, he said.“People throw away plastic because there they don’t see any value,” Minh said. “As long as we can make it valuable, everyone will keep it and sell it.”HighwaysUsing plastic waste to build roads is gaining in popularity, not least because all types of plastic including difficult-to-recycle multilayered packaging and flexible films and coatings used to wrap chocolates and for food deliveries can be used. Dow Chemical and India’s Reliance Industries Ltd. have developed technologies that use this plastic as a binder, replacing some of the bitumen.The Mukesh Ambani-led company has built 40 kilometers of road at its refineries using plastic that can’t otherwise be recycled, and is in talks with National Highways Authority of India and other road builders about using the technology more widely, said Vipul Shah, chief operating officer for the petrochemicals business.Meanwhile Indian Oil Corp., the country’s biggest refiner, is trying to get the government to make the blending of non-recyclable plastics in road-laying mandatory, said S.S.V. Ramakumar, director of research and development.In the Philippines, San Miguel Corp. laid down its first road combining plastic scraps with asphalt last year, using surface material developed with Dow. The chemicals giant has also helped build plastic-based roads in India, Indonesia, Vietnam and the U.S., according to Dow’s Penrice.See also: The Philippines Is Making Roads and Cement With Plastic Garbage“It’s relatively simple from the technology point of view: you shred the plastic waste, some sorting and selection and then you feed it into the existing asphalt machinery,” he said. “Approximately 100 tons of plastic waste can be recycled into a 40-kilometer stretch of road.”TextilesShredding plastic bottles to produce polyester for clothing is another technology that’s gaining traction in Asia. Reliance has set up reverse-vending machines that collect used bottles in exchange for discount coupons that can be redeemed at its company stores.The company, India’s largest petrochemicals manufacturer, can recycle around 2 billion plastic bottles a year, or 33,000 tons, according to Shah. Capacity will be doubled over the next 18 months, he said.BricksSome non-government organizations and companies are looking at ways to use waste plastic to make bricks and other construction materials. The Global Ecobrick Alliance is promoting use of a block tightly crammed with plastic and other recyclables. Qube, an India-based start-up, has developed a brick made entirely of plastic waste. Called the PlastiQube, it’s cheaper and uses less energy to produce than conventional counterparts, according to the company’s website.Chemical RecyclingBreaking down waste plastic into a basic feedstock like naphtha -- a process called pyrolysis -- can reprocess dirty, contaminated plastics like detergent drums and mixed polymers that can’t be dealt with through mechanical recycling.Pyrolysis will provide around 17% of the 19 million tons of plastics recycling capacity required by 2030 in major economies, according to BloombergNEF. Dow will source oil feedstock made using pyrolysis from Dutch company Fuenix Ecogy Group, while Royal Dutch Shell PLC and Total SA have partnered with start-ups to increase use of the technology.“Mechanical recycling will continue to be cheaper,” said Boursier at SUEZ, which is setting up a pyrolysis pilot project in Bristol in the U.K. “But for complex or polluted plastic, chemical recycling will be the future.”(Company corrects second paragraph to show $100 billion is the value of all plastic packaging that’s not being recycled)To contact the reporters on this story: Saket Sundria in Singapore at email@example.com;Debjit Chakraborty in New Delhi at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Andrew Janes, Adam MajendieFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The inaccurate reporting on PepsiCo's earnings shows why it can be costly to react to the rapid-fire news stories that follow a release.
(Bloomberg) -- PepsiCo Inc. shares rallied after the snack and beverage giant reported robust sales growth at its Frito-Lay North America business, even as its 2020 earnings forecast fell short of analyst estimates.Pepsi’s Frito-Lay unit posted a 4.5% rise in 2019 organic sales -- which strips out elements like currency volatility -- its best yearly performance since 2013, the company said in its earnings report. Overall, organic revenue rose 4.3% in the fourth quarter, versus an analyst estimate of 3.7%.Still, the company projected core earnings per share of $5.88 in 2020, just shy of the $5.95 average of estimates compiled by Bloomberg. Pepsi also sees organic sales growth at 4% this year, trailing analyst expectations. The shares pared earlier losses of as much as 1.7% to close at a record high.Pepsi is trying to tap demand for snacks like Doritos and Lay’s potato chips to offset a general decline in the consumption of sugary soft drinks. Still, sales were also up in the key North American beverage unit, which has faced pressure as consumers cut down on sugary soda and competitors flood stores with a host of new options. The business posted total revenue growth of 4% for the quarter. The same measure of European sales jumped by 15%, helped by its 2018 acquisition of SodaStream International Ltd.Pepsi is investing in more manufacturing capacity, including new plants, new lines and more distribution infrastructure. It is also spending more money on data analytics and will “build consumer intimacy,” a sign the company will look deeper at shoppers’ buying habits and preferences, its executives said on the call.The Internet has changed the way companies can market products and Pepsi is taking advantage of that. “The ability to actually understand consumers at a more individualized level is now out there,” Hugh Johnston, chief financial officer, said in an interview. “Then combine that with the fact that you then have the ability to market to them in a much more specialized way, in a much more targeted way, than you would in TV only.”The company expects about $11 billion in cash from operating activities and $6 billion of free cash flow in 2020, which translates to net capital spending of about $5 billion, according to its earnings statement.(Updates with share price rebound from first paragraph.)To contact the reporters on this story: Deena Shanker in New York at firstname.lastname@example.org;Jonathan Roeder in Chicago at email@example.comTo contact the editor responsible for this story: Sally Bakewell at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
PepsiCo shares were under some pressure Thursday morning, falling about 0.7% after the company reported earnings. PepsiCo reported in-line fourth-quarter earnings per share, while revenue of $20.64 billion grew 5.7% year over year and easily topped expectations by $400 million. Further, organic sales growth of 4.3% also beat consensus estimates of 3.7%.
As a participant, Shindig will receive $20,000 in grant funding and participate in a six-month business mentorship program.
The beverage and snack giant Pepsi Co Inc (NASDAQ: PEP) topped Wall Street estimates for its fourth-quarter earnings and revenue. As for the whole picture, earnings per share amounted to $1.45, adjusted from a revenue of $20.64 billion, Refinitiv's expectations were $1.44 expected and $20.27 billion accordingly. Total revenue did rise nearly 6% to $20.64 billion and slightly topped expectations of $20.27 billion.
PepsiCo CFO Hugh Johnston discusses with Yahoo Finance how the coronavirus has impacted results in China for the beverage and snacks giant.
Stocks fell sharply overseas and U.S. futures plunged after China reported thousands more cases and a larger death toll. The 10-year yield slipped below 1.6%, the Cboe Volatility Index (INDEXCBOE: VXS) jumped above 15, and gold prices are firmer. PVH Corp (NYSE: PVH)—which owns brands like Tommy Hilfiger and Calvin Klein—rose more than 4%.
PepsiCo is the 'Stock of the Day' at Real Money this Thursday. PEP reported their Q4 numbers and posted in-line NON-GAAP earnings of $1.45 and beat revenue expectations by $400 million. The stock is firmer now but let's check in on the charts and indicators.
Jim Cramer has some thoughts on Tesla , PepsiCo and the coronavirus. PepsiCo said core earnings for the three months ending in December were pegged at $1.45 per share, a penny ahead of the Street consensus forecast. Group revenues, the company said, fell 9.75% from last year but topped analyst's estimates with a $20.64 billion tally. "We increased brand support to become more locally relevant and consumer-centric, we strengthened our go-to-market execution to enhance our customer relationships, and we embraced a new set of initiatives to help build a more sustainable food system," Laguarta said.
PepsiCo's (PEP) fourth-quarter 2019 results benefit from strength across all of its businesses as well as robust pricing and volume. It provides view for 2020.
(Bloomberg Opinion) -- It’s never good when a CEO has to kick off his company’s year-end earnings report, as Kraft Heinz Co.’s did Thursday morning, by saying: “While our 2019 results were disappointing ...” Disappointing is putting it mildly, though. Try miserable.To recap: It was one year ago this month that the packaged-food manufacturer suffered a $15.4 billion writedown because of damage — largely self-inflicted — to the value of two of its biggest brand names, Kraft and Oscar Mayer. A slash to shareholders’ dividends and the oh-by-the-way mention of a Securities and Exchange Commission inquiry into some accounting practices added to Kraft Heinz’s troubles. The stock, adored by Warren Buffett, its top shareholder, has been down 38% ever since. Right up until then, this was the company that most analysts promoted to their clients and every food giant wanted to emulate — a lean, profit-margin machine operated by a bunch of private equity guys that just so happens to sell food.Kraft Heinz’s sales continued to slide in the final three months of 2019 to $6.54 billion, a 2.2% drop when excluding the effect of business divestitures. On most metrics, Thursday’s results beat the average of analysts’ estimates, and CEO Miguel Patricio said he expects to make “significant progress” this year in the company’s ongoing turnaround. But there’s been little evidence of improvement yet, and he’s nearly eight months into the job, after taking over from Bernardo Hees, one of the aforementioned private equity partners from 3G Capital. (That’s the shop that merged Kraft Foods and H.J. Heinz condiments in 2015 with the financial backing of Buffett’s Berkshire Hathaway Inc.) In a recent interview with my Bloomberg News colleagues, Patricio talked about spending more on the company’s biggest moneymakers, such as Philadelphia cream cheese and Heinz ketchup, but not by increasing the budget — this is still a 3G company, after all. Instead, he’ll be shifting around resources to prioritize the most promising products and brands, as cheese, coffee and cold cuts continue to be the problem areas. In the latest quarter, Kraft wrote down the carrying value of its Maxwell House trademark by $213 million, part of an overall $666 million impairment charge that was primarily driven by its international businesses.Of course, Kraft Heinz isn’t the only consumer-products company that’s been thrown for a loop by shoppers’ changing appetites. The move toward less-processed, healthier-sounding foods and the villainization of sugar and carbohydrates has weighed on every household name in the industry. Some have been dealing with it by acquiring the fast-growing upstart brands that have been encroaching on their supermarket shelf space. PepsiCo Inc. has done a version of what Kraft Heinz is attempting by making a big push for chips like Doritos that are holding up even as more seemingly wholesome snacks gain popularity. The soda giant reported sales and earnings that beat expectations on Thursday, with operating profit rising 3% in its Frito-Lay North America chips division; beverage sales managed to climb, too.A new CEO walking into Kraft Heinz’s mess deserves time to get a handle on things. But now it’s time to lay out a concrete strategy that shows Kraft Heinz understands the root cause of its problems, that the entire 3G ethos had the company under-investing in its products at exactly the time it needed to be doing the exact opposite. Patricio says to stay tuned for May, when he’ll unveil such a plan. Investors can’t possibly feel optimistic until they see it. To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Consumer staples are supposed to be boring, and PepsiCo, at least, lived up to that reputation with earnings that were largely a yawner but managed to send its stock slightly higher.
PepsiCo (PEP) delivered earnings and revenue surprises of 1.40% and 1.30%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?