Premarket Movers: PEP Rises After Earnings Beat, LEVI And STZ Slide On Guidance, Analyst Cuts

• PepsiCo reported quarterly profit and revenue above Wall Street expectations, helped by stronger international performance.
• Levi Strauss posted adjusted EPS of $0.48 versus $0.36 expected, but roughly $0.11 of the beat came from about $80 million in tariff refunds.
• Constellation Brands faced multiple analyst target cuts, with Needham, Piper Sandler, Morgan Stanley and UBS all lowering their targets.

Levi Strauss & Co. (LEVI), PepsiCo (PEP) and Constellation Brands (STZ) were in focus in premarket trading on Thursday, with LEVI and STZ shares under pressure while PepsiCo moved higher after quarterly results. 

Levi Strauss beat profit expectations but lowered its full-year revenue growth guidance, while PepsiCo topped quarterly estimates but cut its full-year earnings forecast. Constellation Brands faced a series of analyst price-target cuts and a downgrade. 

LEVI Stock Slides Despite Profit Beat

Levi Strauss & Co. shares fell about 1.2% premarket to $19.28 as investors assessed its fiscal third-quarter results, which beat profit expectations but missed on revenue. The company reported adjusted earnings of $0.48 per share, compared with Wall Street expectations of $0.36. However, about $0.11 of the earnings outperformance came from roughly $80 million in tariff refunds received under the International Emergency Economic Powers Act, net of the amount redeployed into promotions and marketing. The denim retailer lowered its full-year revenue growth guidance but raised its profit outlook. 

PEP Stock Gains After Earnings Beat

PepsiCo stock rose about 1% premarket after the company reported higher profit and revenue in its fiscal third quarter, with both results topping analysts’ expectations. International growth helped the company's performance, while its North American business continued to lag. PepsiCo lowered its full-year earnings forecast, with core earnings per share now expected to increase 2.5% to 3.5%, compared with its previous projection of 5% to 7%. The company also expects net revenue growth of about 6%, at the high end of its previous 4% to 6% range.

STZ Faces String Of Price Target Cuts

Constellation Brands shares were down after a series of analyst price-target reductions. Needham lowered its price target to $150 from $185, while Piper Sandler cut its target to $125 from $161. Morgan Stanley lowered its target to $145 from $158, and UBS reduced its target to $144 from $145. HSBC also downgraded Constellation Brands to Hold from Buy.

LEVI, PEP, STZ: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for LEVI and STZ was ‘bullish,’ with message volume being ‘extremely high’ for both. For PEP, the sentiment was ‘extremely bullish,’ while message volume was ‘high.’

Year to date, LEVI stock is down around 7%, while PEP shares have declined 14% and STZ stock is down about 15%.

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