PepsiCo (PEP) Reports Q4: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2024/02/08 2:01 am EST

Food and beverage company PepsiCo (NASDAQ:PEP) will be announcing earnings results tomorrow before market open. Here's what you need to know.

Last quarter PepsiCo reported revenues of $23.45 billion, up 6.7% year on year, in line with analyst expectations. It was a strong quarter for the company, with optimistic earnings guidance for the full year.

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 1.3% year on year to $28.37 billion, slowing down from the 10.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.72 per share.

PepsiCo Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.5%.

Looking at PepsiCo's peers in the consumer staples segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Constellation Brands delivered top-line growth of 1.4% year on year, missing analyst estimates by 2.6% and BellRing Brands reported revenues up 18.7% year on year, exceeding estimates by 5.4%. Both stocks (Constellation Brands and BellRing Brands) traded flat on the results.

Read our full analysis of Constellation Brands's results here and BellRing Brands's results here.

Investors in the consumer staples segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. PepsiCo is up 2.7% during the same time, and is heading into the earnings with analyst price target of $187.3, compared to share price of $171.5.

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