PepsiCo, Inc. (NASDAQ:PEP) has checked in with second-quarter earnings that beat analyst expectations, and CNBC’s Jim Cramer is among those that’s applauding the company’s turnaround. He also notes that there’s another silver lining wrapped around Pepsi’s good news.
CNBC shares what Cramer had to say about Pepsi’s successful quarter.
Besides the fact that PepsiCo’s earnings beat on Tuesday set the stage for a strong earnings season, Jim Cramer’s favorite thing about its report was what it showed the short-sellers.
“PepsiCo’s stock had attracted a raft of short sellers going into the quarter, people betting that they could cash in on an instant decline,” the host of CNBC’s “Mad Money” said Tuesday.
“Instead, they heard the two words short sellers fear most: ‘sequential improvement,’ as in each month was better than the previous one during the quarter and the improvement’s continued into this new quarter, which is benefiting from a heat wave,” Cramer added. He also predicts that the company will be able to continue exceeding expectations for the rest of the year.
Cramer also took the time to give a tip of the cap to PepsiCo Chairman and CEO Indra Nooyi for her “remarkable work.”
PepsiCo, Inc. shares were trading at $112.54 per share on Wednesday afternoon, down $0.35 (-0.31%). Year-to-date, PEP has declined -4.59%, versus a 4.65% rise in the benchmark S&P 500 index during the same period.