Earnings Outlook for PepsiCo

On Thursday, April 15, PepsiCo PEP will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

PepsiCo EPS will likely be near $1.12 while revenue will be around $14.55 billion, according to analysts. PepsiCo earnings in the same period a year ago was $1.07 per share. Quarterly sales came in at $13.88 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be up 4.67%. Sales would be have grown 4.82% from the same quarter last year. Here is how the PepsiCo's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares of PepsiCo are up 4.63%.

Do not be surprised to see the stock move on comments made during its conference call. PepsiCo is scheduled to hold the call at 08:15:00 ET and can be accessed here.