New Year's Earnings: PepsiCo, Yum Brands, Walgreens

• This week, not surprisingly, will be very quiet on the earnings front.
• A beverage giant, a fast-food giant and a leading drug store operator are likely to report after the first of the year.
• The new earnings season really kicks into high gear in mid-January.

It is little surprise that there are virtually no earnings reports of note due out during the quiet week between Christmas and New Year's. But looking ahead, more reports will begin popping up on the schedule right after the turn of the calendar page. Among the most anticipated are the latest results from PepsiCo, Inc. PEP, Yum! Brands, Inc. YUM and Walgreens Boots Alliance Inc WBA.

The consensus analysts' forecast calls for Pepsi, which like its competitors has been diversifying beyond its flagship products, to show solid growth on the top and bottom lines, compared with a year ago. For the fast-food giant, the focus in the recent quarter was the divestiture of the China business, and analysts see earnings growth here too, but with a sharp decline in revenue. A merger is on the minds of the leading drug store operator, as it has been looking to divest stores to make that tie-up with Rite Aid Corporation RAD happen. Marginal growth will be seen in its report, if it lives up to expectations.

Below is a quick look at what is expected from the results of these three, as well as a peek at a few of the other upcoming quarterly reports.

PepsiCo

The fiscal fourth-quarter profit of this maker of Cheetos, Cap'n Crunch and many others is anticipated to come in at $1.16 per share, which is a dime more than in the year-ago period, according to Wall Street analysts. The consensus of 10 Estimize respondents has earnings pegged at $1.17 per share. Note that both Wall Street and Estimize underestimated earnings in the previous three quarters.

The report date is so far unconfirmed, but analysts are looking for $19.63 billion in revenue for the three months that ended in December, compared with the $19.73 billion that Estimize predicts. Either forecast represents the highest revenue in the past six quarters, and note that the top line was better than both estimates back in the third quarter.

Yum Brands

In its report, also unconfirmed at last check, this operator of Pizza Hut and Taco Bell restaurants is expected to say that it had earnings per share (EPS) of $0.83 in its fiscal fourth quarter, according to Estimze. That would be up from a profit of $0.68 per share a year ago. Wall Street is more pessimistic, with a consensus estimate of $0.73 per share, but the analysts have underestimated EPS in three of the past four quarters.

Estimize overestimated revenue in the previous two quarters, and this time the 11 respondents are looking for $2.45 billion. The Wall Street estimate is $2.04 billion, which would be a drop of more than 48 percent year-over-year and would represent a two-year low. Wall Street predicts a drop of than 51 percent year-on-year for the full year.

Walgreens

The consensus Wall Street forecast calls for this Walgreens and Boots pharmacies operator to post fiscal first-quarter EPS of $1.09 (up six cents from in the same period of last year) but for revenue to have ticked up less than 1 percent to $29.24 billion in the period. Note that analysts overestimated the top line and underestimated the bottom line in the past six quarters.

Estimize is a bit more optimistic on the bottom line, with the consensus of 18 respondents pegging EPS at $1.11, with revenue of $29.32 billion also expected for the three months that ended in November. Estimize has likewise underestimated earnings results in recent quarters. Walgreens is scheduled to share its latest results before trading begins on Thursday, January 5.

And Others

Other reports to watch for before the fourth-quarter reporting season gets into full swing include Acuity Brands, Constellation Brands, Global Payments, Monsanto and PriceSmart, all of which are forecast to show year-on-year earnings growth. On the other hand, shrinking earnings are anticipated from Commercial Metals, Delta Air Lines, Fastenal, KB Home and Progressive.

The new earnings season really begins when the big banks line up to share their fourth-quarter results, starting with Bank of America, JPMorgan and Wells Fargo on January 13.