Solid Earnings from PepsiCo Point to Continued Growth Overseas

PepsiCo (NYSE: PEP) reported earnings last week, and the beverage and snack purveyor posted solid results:

  • Net revenue of $12.7 billion, up from $12.0 billion (4% increase year-over-year)
  • Net income of $1.34 billion, up from $1.32 billion (2% increase YOY)
  • Earnings of $0.94 per share, up from $0.91 per share (3% increase YOY)

If you’ll recall from a few weeks ago, the main thing I was watching for in my investment in PepsiCo was its non-soda business (through its ownership in Frito Lay and Quaker Foods) and its impact on the bottom line as people drink less sugary drinks in general. The company specifically mentioned a decrease in operating profit for both segments during the quarter, primarily driven by cost inflation and bonuses paid in response to the Tax Cuts and Job Act. However, productivity gains helped offset the losses felt, with Frito Lay and Quaker Foods showing an overall increase in 3% between the two segments. Continue reading

Record Results for Activision Blizzard Push Share Price Higher

Activision Blizzard (Nasdaq: ATVI) reported earnings after the market closed yesterday (May 3rd), and the game company continues to exceed its own expectations:

  • Record net revenue of $1.97 billion, up from $1.73 billion (14% increase year-over-year)
  • Net income of $500 million, up from $426 million (17% increase YOY)
  • Earnings of $0.66 per share, up from $0.57 per share (15.8% increase YOY)

If you’ll recall from a few weeks ago, the main thing I was watching for in my investment in Activision Blizzard was its subscribers, first for its legacy products from big game franchises like Warcraft and Call of Duty, but also from its users of its mobile games. Though it no longer break out individual game titles, it did highlight some usage numbers from some of its flagship properties. Continue reading

Square Continues Its Fast Growth Towards Profitability

Square (NYSE: SQ) reported earnings after the market closed on May 2, 2018, and the payment processor continues to show strong growth where it matters:

  • Total net revenue of $669 million, up from $462 million (45% increase year-over-year)
  • Gross payment volume of $17.8 billion, up from $13.6 billion (31% increase YOY)
  • Adjusted revenue of $307 million, up from $204 million (51% increase YOY)

If you’ll recall from a few weeks ago – and from my earnings reports on Visa (NYSE: V), PayPal Holdings (Nasdaq: PYPL), and Mastercard (NYSE: MA) – Square is part of my “War on Cash” basket. Unlike the others, Square is not yet profitable, and as the smallest of the four has some catching up to do, but nevertheless appears to be going in the same direction. Continue reading

Mastercard’s Record-Breaking Quarter Bodes Well For Rest of Year

Mastercard (NYSE: MA) reported earnings after the market closed on May 2, 2018, and it was a record-breaking quarter for the payment processor:

  • Record net revenue of $3.6 billion, up from $2.7 billion (31% increase year-over-year)
  • Record net income rose to $1.5 billion, up from $1.1 billion (38% increase YOY)
  • Diluted earnings of $1.41 per share, up from $1.00 per share (41% increase YOY)

If you’ll recall from a few weeks ago (and from my earnings reports on Visa (NYSE: V) and PayPal Holdings (Nasdaq: PYPL), Mastercard is part of my “War on Cash” basket with those companies and Square (NYSE: SQ). Similar to last week, shares were boosted slightly again with these results from Mastercard and Square (which I covered here), and the “War on Cash” thesis seems to be strong for at least another quarter. Continue reading