Pepsi Bottling Group (PBG) issued Q4 results on Tuesday. On a reported basis, the company made 40 cents per share. Last year at this time, there was a loss of $1.28 per share. In addition to that good news, Earnings.com says that expectations hovered around 43 cents per share, a figure much less than the adjusted stat of 59 cents.

Unfortunately, the top line didn't budge, and total worldwide physical case volume for the full fiscal year was worse by 3%. The latter metric is key to a beverage business, and in some ways, ultimately more important than net income. And in terms of cash from operations, there wasn't much going on. For the twelve-month period, money generation was slightly down.

Continue reading Pepsi Bottling Group's Q4: Biding Time Before Merger

Pepsi Bottling Group's Q4: Biding Time Before Merger originally appeared on BloggingStocks on Wed, 03 Feb 2010 16:20:00 EST. Please see our terms for use of feeds.

Net revenue decreased 1.5%. Earnings per share on an adjusted basis increased 2% to $1.08. This bottom-line result is representative of a nice beat against the analysts. They were projecting $1.02 per share for profit, according to Elizabeth Harrow's preview of the quarter.

Continue reading PepsiCo increases adjusted profit, beats the analysts in Q3

PepsiCo increases adjusted profit, beats the analysts in Q3 originally appeared on BloggingStocks on Thu, 08 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

Brown-Forman (NYSE: BF.B), the maker of alcohol products such as Jack Daniel's and Southern Comfort, is drunk on success today. The B shares of the company were up well over 8% at the time of this writing in afternoon trading, on good volume. The first-quarter earnings served as the catalyst.

Net sales unfortunately decreased 7%, but earnings per share on an adjusted basis (taking into account a charge in the year-ago period) expanded by 17% to 81 cents. According to Earnings.com, that number came in way ahead of estimates of 62 cents per share.

Continue reading Brown-Forman intoxicated on its Q1 results

Brown-Forman intoxicated on its Q1 results originally appeared on BloggingStocks on Wed, 02 Sep 2009 17:30:00 EST. Please see our terms for use of feeds.

According to the preview, Dr Pepper was supposed to do $1.5 billion on the top line and 49 cents on the bottom line. Net sales roughly matched the estimate, but net income went way beyond the call. Dr Pepper made 62 cents per share on an adjusted basis.

Continue reading Dr Pepper up on Q2 report

Dr Pepper up on Q2 report originally appeared on BloggingStocks on Thu, 13 Aug 2009 15:00:00 EST. Please see our terms for use of feeds.

"Not surprisingly, Coca-Cola (NYSE: KO) has been placing particular emphasis on China, where there is plenty of untapped potential," says Paul Tracy in his StreetAuthority Market Advisor.

"Like most companies that have been around for well over a century, Coca-Cola operates in a relatively mature industry.

"Domestically, per-capita soft-drink consumption has plateaued and domestic volume growth is generally tough to come by.

"The story is quite different for many overseas markets, which now account for about 75% of the firm's sales. Coke isn't the world's most recognized brand for nothing -- consumers in 200 countries around the globe gulp down about 1.6 billion servings of its beverages every single day.

Continue reading Coca-Cola (KO) targets China

Coca-Cola (KO) targets China originally appeared on BloggingStocks on Wed, 29 Jul 2009 14:00:00 EST. Please see our terms for use of feeds.

"Diageo (NYSE: DEO), the world's largest spirits maker, offers solid and safe dividend, as well as the potential for strong capital appreciation," says Louis Basenese.

The senior analyst for the prestigious The Oxford Club suggests, "Moreover, investors can also prepare for a US dollar decline by buying these shares." Here's his bullish outlook.

"Headquartered in London, roughly 70% of the company's sales come from outside the United States. So any dollar dip will increase the value of our ADRs.

"Moreover, management concedes that positive currency tailwinds in the other countries where Diageo sells spirits will help the company easily grow earnings by double digits this year.

Continue reading Diageo: Toast to growth & income

Diageo: Toast to growth & income originally appeared on BloggingStocks on Fri, 24 Jul 2009 15:20:00 EST. Please see our terms for use of feeds.

I've been pretty stunned by the rise in price. Usually, the stock is a sleepy thing that doesn't do much. Well, that's probably not entirely true, but if you've held the company in your portfolio as long as I've held it in mine, you know that it seems that way at least. I own Coke for the long-term because I love its dividend-paying characteristics. And I love its brand equity. I'm wondering, though, if Coke might make a good trade at the moment. Or, maybe I should start adding to my position before it takes too sharp a rise.

Continue reading Coca-Cola: A bubbly trade?

Coca-Cola: A bubbly trade? originally appeared on BloggingStocks on Mon, 01 Jun 2009 15:40:00 EST. Please see our terms for use of feeds.

Dr Pepper Snapple Group (NYSE: DPS) popped open its first-quarter report on Wednesday (I bet you never read that pun before from a financial pundit covering a beverage concern!). On an adjusted basis, sales rose 4%. Management needed to adjust for the termination of a contract with Hansen (NASDAQ: HANS), as well as for currency effects. The company saw a drop in bottom-line income excluding items as earnings came in at $0.37 per share. This was $0.03 less than last year's performance.

However, Dr Pepper can feel happy about the fact that the company beat expectations. The market was only looking for $0.29 per share. How refreshing (yep, another pun)! Volumes did all right during the quarter.

Continue reading Dr Pepper beats the analysts in Q1

Dr Pepper beats the analysts in Q1 originally appeared on BloggingStocks on Thu, 14 May 2009 18:00:00 EST. Please see our terms for use of feeds.

This post is part of a seven article report -- Food for thought: Best bets in food & beverage stocks..

"If you're buying stocks to meet long-term investment goals, now is an excellent time to do some bargain hunting," says Alexander Green. In The Oxford Communique he looks to Diageo (NYSE: DEO).

"One good place to start is with Diageo. We like the outlook for company, which is the world's largest spirit maker. In good times or bad, people drink. According to some studies, even more during the bad times.

"With eight of the top 20 brands, and unparalleled marketing and distribution operations, Diageo is the best way to tap into the globe's steady demand for high-quality spirits.

Continue reading Diageo (DEO): In good spirits

Diageo (DEO): In good spirits originally appeared on BloggingStocks on Wed, 22 Apr 2009 11:30:00 EST. Please see our terms for use of feeds.

"Molson Coors Brewing Company (NYSE:TAP) is a way to drink your way to profits," jests Jonas Elmerraji. In The Rhino Report, the advisor suggests that the brewer is well-positioned to benefit as consumer scale down from more expensive beer brands. Here's his review.

"The stock price of TAP has slid in price in recent months, largely the result of underwhelming Wall Street in its latest earnings release a month ago.

"The company posted earnings of $96.8 million, or $0.44 per share, missing analyst estimates by 30 cents per share. But digging deeper reveals a quarter that wasn't quite as bad as Wall Street made it out to be.

Continue reading On tap with Molson Coors (TAP)

On tap with Molson Coors (TAP) originally appeared on BloggingStocks on Tue, 07 Apr 2009 13:30:00 EST. Please see our terms for use of feeds.

"PepsiCo (NYSE: PEP) Pepsi is about as dependable a company as there is and the stock would be an excellent anchor for most portfolios," says value investor Nathan Slaughter.

In his Half-Priced Stocks, he says, "All told, PepsiCo has built an impressive lineup of 18 brands that each generate more than $1 billion in annual sales."

"Long ago, management realized that carbonated drink sales would fizzle out and per-capita consumption would become sluggish. In their place, bottled water and sports drinks became two of the fastest-growing categories. And Pepsi is the dominant player in both, with its Aquafina and Gatorade brands.

"Meanwhile, energy drinks have emerged as the industry's hottest segment -- with sales soaring from $1.2 billion in 2002 to more than $6.6 billion last year. Again, Pepsi is well-represented with Amp.

Continue reading PepsiCo (PEP): A portfolio anchor

PepsiCo (PEP): A portfolio anchor originally appeared on BloggingStocks on Thu, 26 Feb 2009 13:35:00 EST. Please see our terms for use of feeds.

Continue reading Pepsi Bottling Group beats in Q4, is it a value?

Pepsi Bottling Group beats in Q4, is it a value? originally appeared on BloggingStocks on Tue, 10 Feb 2009 15:30:00 EST. Please see our terms for use of feeds.

This post is one of six articles on beverage-related stocks. Here are five other investment ideas to sip on.

"PepsiAmericas (NYSE: PAS) is the world's second-largest bottler of PepsiCo beverages," notes Vahan Janjigan, noted quantitative analyst and editor of the industry-leading The Forbes Growth Investor.

"PepsiAmerica's is 44% owned by PepsiCo (NYSE: PEP). Brands licensed from PepsiCo accounted for 90% of 2007 sales. The U.S. was responsible for 70% of first half 2008 sales.

"This territory consists of 19 states mostly in the Midwest. Pepsi, Mountain Dew, and Aquafina are top brands in the U.S. Central and Eastern Europe generated 25% of sales. Markets include Ukraine, Poland, Romania, Hungary, Czech Republic, and Slovakia.

"The U.S.is a mature market with limited growth opportunities and has presented special challenges in recent years as consumers shy away from traditional carbonated soft drinks (CSDs) in favor of non-carbonated soft drinks and energy drinks.

"This evolution has opened the door to boutique beverage companies, allowing them to grab market share from the traditional players.

"More recently, the U.S.has been hampered with a slowing economy. Of course, raw material costs have been soaring everywhere. By raising prices,management has boosted profitability at the expense of sales.

"At the same time, it is investing in growth abroad. It took a 60% stake in Sandora, a juice company in Ukraine, enhancing the company's ability to supply markets in Belarus, Azerbaijan, Russia, and other East European and Central Asian countries.

"Second quarter net sales increased 11.8% to $1.34 billion, with 8.7 percentage points coming from acquisitions. Price increases offset a decline in volume. Higher ingredient costs depressed the gross profit margin by 68 basis points to 40.78%.

"However, strong expense controls boosted the pro forma operating profit margin by 21 basis points to 12.35%. Pro forma net income jumped 21% to $90.9 million or 72 cents per share.

"A weak economy, changing consumer preferences, and competition could hurt sales volumes. Indeed, despite a recent gain in market share for CSDs in the Midwest, management expects U.S.volumes to fall through the second half of 2008. Full-year adjusted revenues should grow 13-14%.

"Earnings should rise 16-18%. Expansion in Europe should support growth through 2010. PepsiCo and CocaCola branded products account for roughly 25% of the highly fragmented beverage market in Central and Eastern Europe. This is a market ripe for consolidation. It provides a rich pipeline of acquisition candidates."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

PepsiAmericas (PAS) Forbes quant offers bottling bet originally appeared on BloggingStocks on Sun, 14 Sep 2008 14:00:00 EST. Please see our terms for use of feeds.

This post is one of six articles on beverage-related stocks. Here are five other investment ideas to sip on.

"Coca-Cola (NYSE: KO) is a remarkably profitable franchise," says Stephen Leeb. In The Complete Investor, he looks at its expanding market opportunities and expanding dividend.

" Selling its soft drinks and other products to just about every nation in the world, Coke has operating margins of 26.1% and return on common equity of 30.9%. On top of this, it delivers a dividend yield of 3%, higher than the S&P 500's 2.4%.

"And since the payout ratio is only 52.6%, the company could nearly double the yield with no problem at all. While the yield isn't likely to double overnight, Coke clearly has been moving in the direction of favoring higher dividends. Over the past five years, dividends have grown by 11.4% a year.

"In times of inflation, it is particularly critical to invest in companies that can generate growth in both earnings and dividends and that can handle cost pressures with high-margin products. Coke clearly fits this bill.

"The company has been expanding its reach in noncarbonated drinks like juice, water, and sports drinks such as Powerade and Vitamin Water.

"This latter area is Coke's fastest-growing segment, chalking up 12% volume growth in 2007 vs. just 4% for the company's eponymous Coke soft drinks.

"Clearly Coke has regained its footing with successful new product offerings as well as revitalized sales growth in international markets, which provide the bulk of sales and earnings.

"Looking ahead, the company's focus on new high-growth products indicates that earnings could keep growing in double digits, with fewer fluctuations than for most other U.S. large-cap stocks. This together with the dollar's chronic weakness makes multinational Coke a solid long-term holding for conservative investors."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Coca-Cola (KO): 'A remarkably profitable franchise' originally appeared on BloggingStocks on Sun, 14 Sep 2008 10:00:00 EST. Please see our terms for use of feeds.

This post is one of six articles on beverage-related stocks. Here are five other investment ideas to sip on.

"PepsiCo (NYSE: PEP) is feeling the heat from high commodity prices as well as penny-pinching consumers," says Chuck Carlson, the advisory industry's top authority on dividend reinvestment plans.

The editor of The DRIP Investor suggests, "The stock has pulled back more than 18% from its 52-week high. Investors should take advantage of the current price lull to do buying in these shares."

"The decline follows weakness in a variety of consumer-related stocks. However, while near-term price action will likely be limited, the stock's long-term prospects remain sound.

"The firm has strong market positions in its soft-drink, sport-drink, and snack-food businesses. Record pro? ts are expected this year and next. A rising dividend stream enhances appeal.

"PepsiCo is one of the world's largest food and beverage companies, with 2007 revenue of more than $39 billion. It has 18 brands that generate $1 billion or more in annual revenue.

"Its international business generated around 40% of sales and 29% of operating profits in 2007. The international side has been a major growth engine, with PepsiCo International showing 27% revenue growth in the first quarter. Thus, these shares have lost some of their defensive appeal during the recent market downturn.

"Despite higher raw-material costs, PepsiCo should post record pro?ts in 2008 of at least $3.72 per share, up from $3.38 in 2007.

"The stock currently trades at 17 times expected 2008 results. That is not necessarily bargain basement but is a fair valuation for a company that consistently produces solid revenue and earnings growth.

"The consensus earnings estimate for 2009 is $4.12 per share, but that number could prove conservative should the firm catch a break on commodity prices, which are due for a pullback.

"PepsiCo's steady earnings growth has fueled consistent dividend increases. It recently boosted its dividend 13% to an annual rate of $1.70 per share. It was the 36th annual dividend increase for the company.

"The stock's current yield is 2.6% .I don't see a lot of downside in the stock, perhaps to the $60 level. We view these shares as capable of returning to the $70s over the next 12 months. Investors should take advantage of the current price lull to do buying in these shares.

"DRIP investors take note that PepsiCo offers a direct-purchase plan whereby any investor may buy shares directly, the first share and every share. The plan has a $10 one-time enrollment fee but no ongoing purchase fees."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

PepsiCo (PEP): Add some 'pep' to your portfolio originally appeared on BloggingStocks on Fri, 12 Sep 2008 14:46:00 EST. Please see our terms for use of feeds.

"I've spotted an excellent opportunity to cash in on the turnaround of one of America's most visible companies -- Starbucks (NASDAQ: SBUX)," says Jim Stanton.

The quantitative analyst and contributing editor to Xcelerated Profits Report explains, "I've had my eye on a number of retail stocks for some time now, looking for signs of a potential turnaround, and Starbucks is now high on my list."

"One of the main reasons for the slide in SBUX shares from its high of $40 in November 2006 was the overly aggressive expansion plan.

"And as food and dairy prices have soared, this has led to higher operating costs. In turn, this forced Starbucks to raise prices, just as consumers were struggling from the housing slump and soaring inflation.

"And as competition from the likes of McDonalds and Dunkin Donuts has turned up the heat, Starbucks has suffered charges related to closing out unprofitable stores. But Starbucks is tackling the problems.

Continue reading Turnaround time for Starbucks (SBUX)?

Turnaround time for Starbucks (SBUX)? originally appeared on BloggingStocks on Tue, 12 Aug 2008 13:12:00 EST. Please see our terms for use of feeds.

"I think now is a particularly opportune time to buy the world's largest fast-food company, YUM! Brands (NYSE: YUM) ," says Louis Basenese.

The associate investment director and contributing editor to The Oxford Club observes, "YUM Brands operates 35,000 restaurants under the KFC, Taco Bell and Pizza Hut brands." Here's his review of the firm's outlook, including its expanding role in China.

"For starters, YUM keeps extending its streak of impressive results. For the seventh quarter in a row it beat expectations. Earnings per share increased 16% for the quarter and 28% year-to-date. Not to be overlooked either is the fact YUM raised guidance. Again.

"This quarter, fewer than 5% of companies in the S&P 500 can boast this triple whammy (beating earnings and revenue estimates and raising guidance). Ironically, while most of the other triple-whammy stocks enjoyed hefty single- and double-digit run-ups on the announcements, YUM sold off.

"And here's where I think most investors are missing the boat, and once again focusing too heavily on the short term. Yes, YUM's in a pinch. Food costs are rising and consumers are spending less.

Continue reading Yum! Brands (YUM): 'World class leadership'

Yum! Brands (YUM): 'World class leadership' originally appeared on BloggingStocks on Wed, 06 Aug 2008 10:20:00 EST. Please see our terms for use of feeds.

"With its CEO recently buying $10 million of shares, PepsiAmericas Inc. (NYSE: PAS) has to be considered one of the most credible Insider stories in quite some time," notes Jack Adamo.

Here, in his Insiders Plus newsletter, the advisor -- who specializes in assessing situations in which corporate insiders are purchasing stock -- he looks at the world's second-largest Pepsi bottler.

"When I was a kid, a Pepsi was a dime; today, it's about $1.50 for the same size bottle. So, forgive me if I laugh myself silly when analysts say Pepsi bottlers are in trouble due to cost inflation.

"The price of the product has gone up at a compound annual rate of 5.6% per year for 50 years. Is this year going to kill it? I think not. Nor does CEO, Rober Pohlad whose recent purchase was done through a family-owned holding company.

"It was not a huge buy in relation to his holdings -- it increased his stake in the company from 9.6% to 9.9% -- but $10 million is $10 million. Do that a few times, and pretty soon it starts adding up to real money. (Sorry, couldn't resist.)

"The stock has fallen this year from $36 to $26, which is about where he made his recent buys. After a blowout 2007, the company guided down expectations for 2008, citing economic weakness. The stock quickly tanked.

Continue reading CEO invests $10 million at PepsiAmericas (PAS)

CEO invests $10 million at PepsiAmericas (PAS) originally appeared on BloggingStocks on Mon, 14 Apr 2008 14:30:00 EST. Please see our terms for use of feeds.