Food and beverage company PepsiCo (NASDAQ:PEP) will be reporting results this Thursday before the bell. Here’s what to expect.
PepsiCo beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $17.92 billion, down 1.8% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ organic revenue estimates but a slight miss of analysts’ EPS estimates.
Is PepsiCo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PepsiCo’s revenue to be flat year on year at $22.35 billion, slowing from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.03 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 10 analysts). PepsiCo has missed Wall Street’s revenue estimates five times over the last two years.
Looking at PepsiCo’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 5.5% year on year, missing analysts’ expectations by 1.5%, and McCormick reported flat revenue, in line with consensus estimates. Constellation Brands traded up 4.5% following the results while McCormick was also up 3.6%.
Read our full analysis of Constellation Brands’s results here and McCormick’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. PepsiCo is up 1.9% during the same time and is heading into earnings with an average analyst price target of $147.70 (compared to the current share price of $133.94).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.