Pepsico, Inc. (NYSE:PEP) will release FQ2’17 earnings before the market opens on Tuesday, July 11th. Pepsi has been on somewhat of a rollercoaster ride in terms of EPS and revenue, the company’s Q4 and Q1 showed a downward trend, with a bounceback in Q2; which is exactly what Estimize and the Street are predicting for this upcoming report.
The Estimize community is predicting EPS to come in two cents higher than the street at $1.42, and revenue at $15.662M, which is slightly more optimistic than the street ($15.642M). Estimize data also highlights that Pepsico sees positive price movement after an earnings release 68% of the time. The Estimize data also shows that Pepsico’s EPS beats the street 93% of the time.
Pepsi is constantly growing their brand. Beyond their namesake brand, they’ve created partnerships and/or acquired a plethora of household names like Cheetos, Lay’s, Tropicana, Starbucks (NASDAQ:SBUX), Quaker Oats, and the list goes on. The extensive list of brands are mitigating the risk associated with weak soda volumes, specifically a 9.2% drop in Diet Pepsi in 2016. Furthermore, Pepsi is creating brands that fit the health conscious market such as the launch of LIFEWTR which is a electrolyte-enhanced water. Analysts at Jefferies have a “Buy” rating and a price target of $130.