Wall Street woke up Tuesday morning in an unsettled mood, but none of its concerns held back the Nasdaq Composite (NASDAQINDEX:^IXIC). As of 10:30 a.m. EDT today, the Nasdaq was up a third of a percent even as some other market benchmarks were down on the day.
A couple of high-profile stocks stood out from the crowd on Tuesday morning. OrganiGram Holdings (NASDAQ:OGI) had an upbeat view of the Canadian cannabis market, helping marijuana stocks rise across the sector. Meanwhile, PepsiCo (NASDAQ:PEP) released solid earnings results that pointed toward continued growth for the beverage and snack giant.
OrganiGram moves higher
Shares of OrganiGram Holdings jumped 15% on Tuesday morning. The Canadian cannabis company’s fiscal third-quarter financial results were a vast improvement over what the company reported three months ago.
OrganiGram’s quarterly numbers looked great. Gross revenue climbed 51% from where it was last quarter and 31% from the previous year. Adult-use recreational sales saw slightly less robust increases but still were able to rise 40% sequentially and 10% year over year.
Moreover, OrganiGram continued to offer more products. Of particular note, its move to highlight its premium high-margin Edison brand is aimed at ways to generate greater value over simply selling cannabis as a commodity. That has helped to narrow OrganiGram’s net losses, and the company anticipates moving forward with some cost savings to further improve its bottom line.
OrganiGram’s fourth-quarter guidance was upbeat. That could help give another shot in the arm to marijuana stocks, which have already seen some big moves higher so far in 2021.
PepsiCo fizzes higher
Elsewhere, shares of PepsiCo rose about 2.5% on Tuesday morning. The beverage and snack food company reported second-quarter financial results that largely confirmed its ability to keep growing even as some favorable tailwinds over the past year start to fade.
PepsiCo’s fundamental performance was outstanding. Revenue overall rose at a greater than 20% rate compared to last year’s second quarter. Earnings jumped even further, soaring 44% to $1.70 per share. That topped investors’ expectations for $1.53 per share on the bottom line.
Looking more closely at various PepsiCo segments, the various beverage units showed substantial gains in revenue and volume, led by a 34% rise in volume in PepsiCo’s Africa, Middle East, and South Asia unit and a 21% rise in organic revenue at PepsiCo Beverages North America. Snack foods performed less well, though, with Quaker Foods North America reporting a 14% drop in organic revenue growth as sales volumes dropped 21% year over year.
PepsiCo sees growth continuing, and it now expects full-year earnings to rise 11% after having previously seen single-digit percentage growth as being likely. Many see PepsiCo as a stalwart stock, and it’s certainly done a good job over the long run keeping its business strong.
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