Market Overview

Earnings Preview: PepsiCo's EPS, Revenue Expected to Rise

PepsiCo (NYSE: PEP) unveils its next round of earnings this Wednesday, October 12, 2011. Here's Benzinga's essential guide to PepsiCo's third quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of $1.30/share and revenues of $17.25 billion. PepsiCo's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.22/share on revenues of $15.51 billion. We'll have to wait for Wednesday to see if PepsiCo falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 Q1 Q4 Q3
EPS Estimate $1.21 $0.73 $1.04 $1.22
EPS Actual $1.21 $0.74 $1.05 $1.22

Stock Performance:

At last check, shares of PepsiCo were trading at $61.02. Shares are down 4.4% year to date. For a full 12 months, the return has declined by 5.6%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

  • Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for PepsiCo is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Want to check out the performance of PepsiCo closest competitors? Take a look at some of the company's peers in the consumer staples sector.

  • Coca-Cola Enterprises (NYSE: CCE): Hold with a $0.76 recent quarter EPS
  • Cott Corp (USA (NYSE: COT): Moderate Buy with a $0.31 recent quarter EPS
  • Dr Pepper Snapple Group (NYSE: DPS): Hold with a $0.77 recent quarter EPS

PepsiCo is in the beverages-soft industry, which has experienced price/earnings growth of 1.4%.

Finally, a description of the company's main areas of operation: PepsiCo is a global company that manufactures a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods.

Take Action:

There is your peek into PepsiCo's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.

  • To see up-to-date news on PepsiCo, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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