Pepsi: It’s the Guidance, Silly

Shares of PepsiCo ( PEP ) are falling this morning after the soft-drink giant beat earnings forecasts but offered disappointing guidance. PepsiCo reported a profit of $1.20 a share, beating forecasts for $1.16 . Unfortunately, it predicted earnings of $5.09 a share in 2017, below analyst expectations for $5.16 a share. Wells Fargo's Bonnie Herzog contends Pepsi's guidance was all that bad: