PepsiCo, Inc. Thursday Earnings Preview

PepsiCo, Inc. PEP will report 3Q Earnings in the pre-market Thursday morning. 

On Tuesday Credit Suisse reported that “PepsiCo sales were modestly up for the month [of September], with flat beverage sales maintaining the trend from [August].

Bank of America noted on Monday that average gross margins for PepsiCo have grown from 52.2 percent in CY 2012 to 53.0 percent in CY 2013 and were estimated to be 53.3 percent for CY 2014.

Year-to-Date the stock is up 12.79 percent with the last 3 months up 4.26 percent.

Analyst estimates place the current September Quarter EPS at $1.29 up from $1.24 a year ago.  The low estimate is $1.24 and the high estimate is $1.33.

The average revenue estimates for the quarter come in at $17.09 billion.  The low estimate is $16.69 billion and the high estimate is $17.44 billion.

Overall, analysts have mostly rated the company a Buy or Strong Buy.

Traders will want to pay attention to the impact of FX, whether the company meets or beats expectations as it has since 3Q 2008 and re-affirms guidance for the year.  The current year average EPS is $4.57 on revenue of $66.87 billion.

PepsiCo, Inc. closed at $93.94 Wednesday, up 0.90 percent.