Earnings Preview For PepsiCo

PepsiCo PEP is set to give its latest quarterly earnings report on Tuesday, 2024-10-08. Here's what investors need to know before the announcement.

Analysts estimate that PepsiCo will report an earnings per share (EPS) of $2.29.

Investors in PepsiCo are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

The company's EPS beat by $0.12 in the last quarter, leading to a 1.48% increase in the share price on the following day.

Here's a look at PepsiCo's past performance and the resulting price change:

Market Performance of PepsiCo's Stock

Shares of PepsiCo were trading at $167.97 as of October 04. Over the last 52-week period, shares are up 1.68%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Opinions on PepsiCo

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding PepsiCo.

The consensus rating for PepsiCo is Neutral, derived from 12 analyst ratings. An average one-year price target of $183.08 implies a potential 9.0% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of Coca-Cola, Monster Beverage and Keurig Dr Pepper, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Coca-Cola, with an average 1-year price target of $71.73, indicating a potential 57.3% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Monster Beverage, with an average 1-year price target of $54.07, implying a potential 67.81% downside.
• The consensus among analysts is an Outperform trajectory for Keurig Dr Pepper, with an average 1-year price target of $39.0, indicating a potential 76.78% downside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for Coca-Cola, Monster Beverage and Keurig Dr Pepper, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

PepsiCo ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind PepsiCo

PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 55% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US and overseas. International markets make up 40% of total sales and one third of operating profits.

Understanding the Numbers: PepsiCo's Finances

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: PepsiCo's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.8%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: PepsiCo's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.7% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): PepsiCo's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 16.02%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): PepsiCo's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.09%, the company showcases efficient use of assets and strong financial health.

Debt Management: PepsiCo's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.31, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for PepsiCo visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.