PEP Earnings Beats Estimates for October 3


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Pepsico Inc. (PEP) just reported earnings on October 3, 2019, before the market opened. Earnings Per Share (EPS) was reported at $1.56, after analysts had expected $1.50 per share. As a result, PEP opened up +3.3%, and closed for the day up +3.0% at 137.93. Since earnings was reported, the stock has traded in a range from 136.50 to 140.45.

Price Volatility Against Expectations

Ahead of earnings, option traders were expecting a ± 3.0% move for this date, so the earnings move of +3.0% was right in line with expectation. PEP has only experienced 3 larger-than-expected earnings moves in the last 12 quarters.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling one day after earnings and buying them back one week after earnings had 67% winning occurrences, for an average gain of +10.5%