Food and beverage company PepsiCo (NASDAQ: PEP) will be reporting results this Thursday morning. Here’s what to look for.
PepsiCo beat analysts’ revenue expectations last quarter, reporting revenues of $19.44 billion, up 8.5% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and a narrow beat of analysts’ organic revenue estimates.
Is PepsiCo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PepsiCo’s revenue to grow 5.6% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PepsiCo has missed Wall Street’s revenue estimates multiple 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 3.3% year on year, beating analysts’ expectations by 1.6%, and General Mills reported revenues up 1.2%, topping estimates by 0.7%.
Read our full analysis of Constellation Brands’s results here and General Mills’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 8.9% on average over the last month. PepsiCo is up 3.2% during the same time and is heading into earnings with an average analyst price target of $168.50 (compared to the current share price of $145.21).
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