Consumer Products

What to Expect When PepsiCo Reports Tuesday

PepsiCo Inc. (NASDAQ: PEP) is scheduled to release its second-quarter financial results before the markets open on Tuesday. The Wall Street consensus estimates are $1.50 in earnings per share (EPS) and $16.42 billion in revenue. The same period of last year reportedly had $1.61 in EPS and $16.09 billion in revenue.

This firm has proven that it is living up to being defensive all over again, despite having significant overseas exposure. The stock was one of a few that actually outperformed the broad markets in midst of trade tensions with China. The shares even hit a 52-week high within the past two weeks.

While adverse foreign exchange translation negatively affected reported net revenue performance in the first quarter, Pepsi’s underlying organic revenue growth accelerated to more than 5% in this time.

Frito-Lay North America and each international division delivered particularly strong operating performance, and PepsiCo Beverages North America generated sequential quarterly net revenue acceleration in the first quarter as well.

Excluding Monday’s move, Pepsi has outperformed the broad markets, with its stock up about 20% year to date. In the past 52 weeks, the stock is up closer to 22%.

A few analysts weighed in on Pepsi ahead of Tuesday’s report:

  • Wells Fargo has a Market Perform rating and a $127 price target.
  • RBC has a Neutral rating with a $115 price target.
  • Goldman Sachs has a Neutral rating and a $132 price target.
  • SunTrust Banks has a Hold rating with a $120 price target.
  • Morgan Stanley has an Overweight rating with a $137 target.
  • Macquarie has an Outperform rating with a $138 price target.

Shares of Pepsi were down about 0.5% at $132.35 on Monday, in a 52-week range of $104.53 to $135.24. The consensus price target is $127.84.