What to Expect From PepsiCo Earnings
PepsiCo is scheduled to release its second-quarter financial results before the markets open on Thursday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
PepsiCo Inc. (NYSE: PEP) is scheduled to release its second-quarter financial results before the markets open on Thursday. The consensus estimates are calling for $1.30 in earnings per share (EPS) on $15.37 billion in revenue. In the same period of last year, the company posted EPS of $1.32 and $15.92 billion in revenue.
The company said its strong first-quarter operating results were driven by balanced execution of its commercial agenda and productivity programs. These marketing initiatives and new product launches are generating solid organic top line growth, and the focus on driving greater efficiency throughout operations contributed significantly to an attractive core gross margin expansion. Pepsi was off to a strong start to the year.
In the fourth-quarter earnings report, Pepsi increased its annual dividend to $3.01 per share from $2.81 and said it would return about $7 billion to shareholders this year, with about $3 billion through buybacks. However, the company forecast 2016 adjusted earnings below many analyst estimates, citing a strong dollar and the exclusion of its Venezuelan business from its financial statements. While this is a short-term headwind, the stock still makes good sense for conservative accounts.
[nativounit]
Prior to the release of the earnings report, a few analysts weighed in on Pepsi:
- Jefferies reiterated a Buy rating with a $119 price target.
- Goldman Sachs reiterated a Neutral rating with a $104 price target.
- Susquehanna reiterated a Neutral rating.
- Credit Agricole reiterated an Outperform rating.
- Deutsche Bank reiterated a Buy rating with a $115 price target.
Excluding Wednesday’s move, Pepsi has outperformed the broad markets, with the stock up 8% year to date. Over the past 52 weeks, the stock was up over 16%.
Shares of Pepsi were last seen down 0.5% at $105.91, with a consensus analyst price target of $112.28 and a 52-week trading range of $76.48 to $106.98.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
