It's been a good week to be in the soda business.
While the debate over whether Pepsi or Coke taste better will probably go on forever, there's no denying the beverage companies have fairly healthy balance sheets.
PepsiCo and Coca-Cola both reported better-than-expected earnings this week, proving to investors that consumers still like their soda (or pop if you're from the Midwest) and snacks.
Shares of PepsiCo (PEP) rallied 5% to a new 52-week high Thursday after the maker of Pepsi, Fritos and Doritos (among other snacks and beverages) reported a 12% jump in earnings per share as sales rose more than 4%.
While its North American beverage business appears to have hit a speed bump, CEO Indra Nooyi remains confident the business is on track to meet expectations this year.
For an eyeblink look at PepsiCo's performance, check out this link http://www.pepsicoinfographicq1.com/
The company attributed some of the beverage volume decline to pricing decisions. Nooyi said the company will continue to explore "sensible opportunities" to boost value.
Meanwhile, Coca-Cola also beat earnings per share by a penny earlier this week, and said the restructuring of its U.S. bottling system was ahead of schedule.
Shares of Coca-Cola (KO) were down slightly Thursday, perhaps due to a Barron's report saying the stock was looking expensive. But shares hit a new 52-week high just yesterday.
Slow and steady wins the race. Take a look at the year-to-date chart and it's been a nice steady climb for both beverage makers.
StockTwits traders weren't rolling out the red carpet just yet, but most were cautiously optimistic.
It's true that PepsiCo's beverage business is still lagging rival Coca-Cola, but as I noted above CEO Indra Nooyi remains optimistic.
"Expect us to continue to play a responsible game in North American beverages to be competitive," she told analysts. "Across the beverage business, we are taking out costs to drive margin and improve returns."
Ooooh, ooooh, ooooh! That would be a trifecta!
Haha. I like the way you think ivanhoff. Verizon also beat EPS forecasts. And even though iPhone activations slipped from the fourth quarter, they were still up year-over-year.
And speaking of defense, let's not forget about Coca-Cola. Though it doesn't seem as though traders are quite as enamored with the brand.
I'm not sure I'm ready to agree. Sure, Barron's thinks Coca-Cola is too pricey, and at 19.4 times projected earnings, it is a little on the high side. But it's not astronomically high.
I have to agree that Europe and China are still turbulent headwinds so we may see some pullback.
J.C. Penney's latest move to turn itself around involves tapping its own credit line.
Early Monday, the retailer announced it drew $850 million from its $1.85 billion credit facility to help replenish its inventory and for other working capital.
The latest move comes after J.C. Penney (JCP) replaced CEO Ron Johnson with his predecessor, Mike Ullman, and tapped the Blackstone Group (BX) to help it raise money.
Related: J.C. Penney fighting for MORECatherine Tymkiw - Apr 15, 2013 1:08 PM ET
Bed Bath & Beyond got a boost Thursday after the home goods retailer reported stronger-than-expected revenue.
While earnings were in line with forecasts, investors cheered the sales figures. Net sales rose nearly 25%, while same store sales -- a key metric of consumer spending -- nudged up 2.5%
Shares of Bed Bath & Beyond (BBBY) rallied more than 4% Thursday before pulling back.
Some of the retreat could be due to MORECatherine Tymkiw - Apr 11, 2013 2:32 PM ET
Investors went shopping at the dollar store early Monday...but the buying spree didn't last too long.
Shares of Dollar General (DG) spiked nearly 6% after the retailer reported earnings that topped forecasts, despite missing revenue estimates.
Investors were heartened by Dollar General's top line earnings numbers and its plan to buy back stock.
But shares pulled back as concern about the company's guidance gave investors pause.
"The volatility of the macroeconomic environment continues to MORECatherine Tymkiw - Mar 25, 2013 12:15 PM ET
Shares of American Apparel (APP) took off Tuesday, after the retailer reported strong earnings and sales.
American Apparel's stock rallied more than 16%, although it's trading well below $2.
Still, the retailer has had a string of wins lately. In addition to reporting a solid quarter, American Apparel said sales would range between $652 million and $660 million for the year.
Just last month, same-store sales bumped up 10%.
"We have set a three MORECatherine Tymkiw - Mar 5, 2013 12:35 PM ET
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
The Dow Jones industrial average hit a new all-time high today, topping the 14,200 level for the first time. Forgive me if I'm not celebrating.
Sure, I'm just as thrilled as the next guy and gal MOREPaul R. La Monica - Mar 5, 2013 12:00 PM ET
Fossil is proving it's alive and kicking.
The accessories maker, best-known for its name-brand watches, reported earnings per share Tuesday that squeaked past estimates by a penny. And sales rose 14% to a record $948 million -- topping forecasts.
Fossil also issued a rosy outlook. The company expects sales to grow 10% in the current quarter and rise between 10% and 11% for its full fiscal year.
The bulk of that will be MORECatherine Tymkiw - Feb 12, 2013 1:01 PM ET
JC Penney's latest tangle has many folks speculating about whether there's another hedge fund battle brewing.
The retailer said it received a Notice of Default from law firm Brown Rudnick, which claims to represent an "ad hoc" group who hold more than 50% of JC Penney's bonds due in 2037.
JC Penney says the notice is "utterly without merit" but it's raised speculation as to who is behind this so-called ad hoc MORECatherine Tymkiw - Feb 5, 2013 12:33 PM ET
Auction site eBay continues to impress investors, thanks in large part to the ongoing success of PayPal.
Late Wednesday, eBay reported better-than-expected earnings and revenue for its latest quarter. And while the company issued slightly weaker guidance for the current quarter, its full-year outlook was rosier.
Shares of eBay (EBAY) rallied nearly 4% to a new 52-week high Thursday. The stock has been on a tear, soaring 41% over the past MORECatherine Tymkiw - Jan 17, 2013 12:22 PM ET
Anyone spare a dollar?
Dollar General (DG) is having a rough day after reporting decent earnings but less-than-stellar guidance. Shares slumped nearly 5% Tuesday.
The discount retailer beat earnings-per-share estimates by 3 cents but that's where the good news ends. Revenue was just in line with forecasts, and Dollar General's outlook left investors with little to cheer about.
"Although our performance over the Thanksgiving weekend and start of the holiday season has MORECatherine Tymkiw - Dec 11, 2012 11:55 AM ET
|China plans to hit US with tariffs following Trump trade sanctions|
|Toys 'R' Us founder Charles Lazarus dies|
|Dow plunges 724 points as trade war fears rock Wall Street|
|Asian stocks plummet on latest trade war fears|
|Billionaire CEO on a mission to save Toys 'R' Us|