Exchange traded funds that track consumer staples stocks were higher Thursday but lagged the overall market as top holding PepsiCo (NYSE: PEP) shares fell nearly 5% after the company cut its outlook.
“PepsiCo delivered quite solid results in the second quarter, increasing internal revenue 8% and earnings per share 10%,” said analysts at investment researcher Morningstar in a note Thursday. “However, near-term trading is likely to be driven by the firm’s lower outlook for the remainder of 2011. While we believe Pepsi’s momentum will continue into the second half of the year, we think its original guidance was too optimistic.”
Separately, Philip Morris (NYSE: PM) rallied 4% following its quarterly earnings beat.
Earlier this week, Coca-Cola (NYSE: KO) bubbled up with second quarter earnings up $1.20 per share, three cents higher than analysts expected, giving a zip to the consumer staples ETFs.
Another top holding, Kimberly-Clark (NYSE: KMB), reports earnings early next week and analysts are looking for net income of $1.15 a share. [Campbell Soup Spices Up Food, Staples ETFs]
Consumer staples ETFs have endured the recent economic slowdown relatively well and investors like the earnings reports although input costs and inflation are lingering worries. [Consumer Staples ETFs Weather Sell-Off.]