Food and beverage company PepsiCo (NASDAQ: PEP) will be reporting results tomorrow before market open. Here’s what to expect.
PepsiCo met analysts’ revenue expectations last quarter, reporting revenues of $27.78 billion, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates but a miss of analysts’ gross margin 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 decline 2.5% year on year to $17.79 billion, a reversal from the 2.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.49 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PepsiCo has missed Wall Street’s revenue estimates five times over the last two years.
Looking at PepsiCo’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Philip Morris delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 2.6%, and Constellation Brands reported revenues up 1.2%, topping estimates by 1.9%. Constellation Brands’s stock price was unchanged following the results.
Read our full analysis of Philip Morris’s results here and Constellation Brands’s results here.
Investors in the beverages, alcohol, and tobacco segment have had steady hands going into earnings, with share prices flat over the last month. PepsiCo is down 1.4% during the same time and is heading into earnings with an average analyst price target of $160.41 (compared to the current share price of $143.91).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
