Food and beverage company PepsiCo (NASDAQ:PEP) will be reporting results tomorrow before market open. Here's what you need to know.
Last quarter PepsiCo reported revenues of $27.85 billion, down 0.5% year on year, missing analyst expectations by 1.8%. It was a mixed quarter for the company: PepsiCo slightly topped analysts' full-year earnings guidance expectations. That stood out as a positive in these results. On the other hand, its organic revenue unfortunately missed analysts' expectations.
Is PepsiCo buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting PepsiCo's revenue to grow 1.5% year on year to $18.11 billion, slowing down from the 10.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.52 per share.
The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.8%.
Looking at PepsiCo's peers in the consumer staples segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Constellation Brands delivered top-line growth of 7.1% year on year, beating analyst estimates by 2% and General Mills reported revenue decline of 0.5% year on year, exceeding estimates by 2.7%. Constellation Brands traded down 1% on the results, and General Mills was up 0.1%.
Read our full analysis of Constellation Brands's results here and General Mills's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share price declining 4.6% over the last month. PepsiCo is up 0.6% during the same time, and is heading into the earnings with analyst price target of $187.6, compared to share price of $173.6.
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