Food and beverage company PepsiCo (NASDAQ: PEP) will be announcing earnings results this Thursday before market hours. Here’s what you need to know.
PepsiCo beat analysts’ revenue expectations last quarter, reporting revenues of $29.34 billion, up 5.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but gross margin in line with analysts’ 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 5.5% year on year, a reversal from the 1.8% decrease it recorded 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 to 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 Q1 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 11.3% year on year, beating analysts’ expectations by 2.3%, and Cal-Maine reported a revenue decline of 53%, topping estimates by 3.8%. Constellation Brands traded up 8.5% following the results while Cal-Maine was down 1.3%.
Read our full analysis of Constellation Brands’s results here and Cal-Maine’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 down 1.3% during the same time and is heading into earnings with an average analyst price target of $169.77 (compared to the current share price of $155.62).
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