Will Pepsi’s earnings be hit by the Middle East crisis? In the Middle East and beyond, into Pakistan, large multinational brands like Pepsi and Coca-Cola have faced boycotts due to the ongoing impact of the Israel-Hamas conflict. To be seen to be supporting some major US brands is a socisl stigma to some and this has resulted in a drop in sales. The question is to what extent have those sales been hit and how will Pepsi’s earnings fare on Friday before the US opens?
Typically the share price is mildly positive over this earnings period with a 0.86% return, but there is a distinct dip around the end of February, with a sharp seasonal pick up from mid-March to the early May?
The major trade risk here is that Pepsi’s earnings surprise to the downside and/or the share price does not follow it’s typical seasonal pattern this year.
Remember don’t just trade it, Seasonax it!