Food and beverage company PepsiCo (NASDAQ: PEP) will be reporting results tomorrow before the bell. Here’s what you need to know.
PepsiCo missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $23.32 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue estimates and EBITDA in line with analysts’ estimates.
Is PepsiCo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PepsiCo’s revenue to be flat year on year at $27.91 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $1.94 per share.
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 four times over the last two years.
Looking at PepsiCo’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Altria delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 0.6%, and Tilray reported revenues up 8.9%, falling short of estimates by 3.6%. Altria’s stock price was unchanged after the results, while Tilray was down 13.5%.
Read our full analysis of Altria’s results here and Tilray’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.5% on average over the last month. PepsiCo is up 2.7% during the same time and is heading into earnings with an average analyst price target of $172.71 (compared to the current share price of $150.23).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
