Pepsi Q3 Earnings Preview: Can The Beverage Giant Keep Beating Expectations and Boost Revenue Growth?

Beverage and food giant PepsiCo Inc PEP could provide an insight on shoppers' habits in the face of rising costs at the grocery store when third-quarter financial results are reported Tuesday before market open.

Earnings Estimates: Analysts expect PepsiCo to report third-quarter revenue of $23.83 billion, up from $22.32 billion in last year's third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in eight of the last 10 quarters, but missed estimates in two of the last three quarters.

Analysts expect the company to report third-quarter earnings per share of $2.29, up from last year's $2.25. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

Read Also: PepsiCo Slumps Ahead Of Q3: Can Earnings Bring The Fizz Back?

Key Items to Watch: Ahead of PepsiCo's third-quarter financial results, several analysts have updated their price targets. Here are recent analyst ratings on PepsiCo and their respective price targets:

• RBC Capital: Maintained Sector Perform rating, lowered price target from $177 to $176
• Barclays: Maintained Overweight rating, lowered price target from $187 to $186
• JPMorgan: Maintained Neutral rating, raised price target from $182 to $185
• Bank of America: Maintained Buy rating, lowered price target from $190 to $185

PepsiCo's report could provide a gauge of consumer spending, with a strong market share for both beverages and snack foods.

The company said it faced a difficult performance for North America convenient foods in the second quarter, which will likely be closely monitored.

Pepsi also recently announced the acquisition of tortilla chip maker Siete Foods for $1.2 billion. The acquisition could bolster Pepsi’s presence in the healthier snack market and may prompt analysts to question whether further acquisitions are on the horizon.

The beverage and food giant could also update guidance for the full year and share how the Siete acquisition could impact revenue and earnings in the future.

PEP Price Action: PepsiCo stock is down 0.6% to $166.93 on Monday, versus a 52-week trading range of $157.43 to $183.79. Pepsi stock is down 3.4% year-to-date in 2024.

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