Market Update: Key Earnings Reports and Stock Reactions
- Jim Cramer expressed concerns that the rise of new weight loss drugs could negatively affect PepsiCo's sales.
- These medications could lead to decreased consumption of sugary beverages, impacting the company's revenue.
- Cramer suggests investors pay close attention to these developments and their potential effects on PepsiCo.
On July 11, 2024, Jim Cramer provided insights into several major companies reporting their quarterly earnings, highlighting mixed results across various sectors. PepsiCo, the renowned soft drinks and snacks giant, reported a mixed performance with a sales miss but an earnings beat. The company also revised its full-year organic revenue outlook down to 4%, although it continues to attract investors with a 3.3% annual dividend yield. Conagra, a consumer-packaged goods company, faced challenges as it reported disappointing earnings attributed to declining organic sales and a weak snack business. Cramer expressed concerns over the lack of consumer engagement with Conagra's brands, such as Slim Jim and Healthy Choice, suggesting that the company is struggling to resonate with its customer base. In the airline sector, Delta Air Lines announced record revenue for its second quarter; however, profits fell short, leading to a more than 5% drop in stock value. Despite this, Delta anticipates continued growth in the third quarter, driven by strong summer travel demand. Meanwhile, Darden Restaurants received a downgrade from Jefferies, which cited risks to its near-term fundamentals, particularly affecting its Olive Garden brand. Lastly, Alcoa surprised analysts with better-than-expected quarterly results, a notable achievement given the current slowdown in aerospace manufacturing. Cramer noted that while the aerospace sector is facing challenges, increased production in the auto industry may help offset these issues for Alcoa.