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High Demand & Solid Pricing to Aid PepsiCo's (PEP) Q3 Earnings
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PepsiCo, Inc. (PEP - Free Report) is expected to register bottom and top-line growth when it reports third-quarter 2022 numbers on Oct 12, before the opening bell. The Zacks Consensus Estimate for third-quarter revenues is pegged at $20.9 billion, implying 3.3% growth from the year-ago quarter's reported figure.
For quarterly earnings, the Zacks Consensus Estimate is pegged at $1.84, suggesting 2.8% growth from the $1.79 reported in the prior-year quarter. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the company reported an earnings beat of 7.5%. It has delivered an earnings surprise of 3.8%, on average, in the trailing four quarters.
Key Factors to Note
Continued strength in its global beverage and convenient food businesses has been acting as the key growth driver for PepsiCo. Market share growth in the liquid refreshment beverage category, with share gains in the carbonated soft drinks, Ready-to-Drink Tea and water categories, are likely to have aided growth in the beverage category. Investments in innovation, pricing and execution also bode well.
The company’s food business has been gaining from revenue growth across core brands like Doritos, Lay’s, Ruffles, Tostitos and Cheetos. The Quaker business has been benefiting from market share gains in the rice and pasta, lite snacks, ready-to-eat cereal, and snack bar categories, as it has been capitalizing on the elevated demand for tasty products that deliver convenience and value.
Strong realized prices across all segments are likely to have resulted in pricing gains in the quarter. The company has been witnessing revenue growth across all segments, which is expected to have continued in the third quarter.
Also, PepsiCo’s cost-management and restructuring actions bode well. The company’s investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities to build competitive advantages have been boosting the top and bottom lines.
However, the company has been witnessing rising inflation stemming from the impacts of supply-chain disruptions as well as higher labor, transportation and commodity costs.
On its last reported quarter’s earnings call, PEP anticipated incremental input cost inflation for the quarter under review. Also, the adverse impacts of foreign currency have been concerning.
Our proven model conclusively predicts an earnings beat for PepsiCo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PepsiCo has a Zacks Rank #3 and an Earnings ESP of +0.47%.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
Philip Morris International (PM - Free Report) currently has an Earnings ESP of +1.77% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports third-quarter 2022 results. The consensus mark for PM’s quarterly revenues is pegged at $6.53 billion, which suggests a 14% dip from the figure reported in the prior-year quarter.
The consensus mark for Philip Morris’ quarterly earnings has moved up by a penny in the past 30 days to $1.23 per share. The consensus estimate for PM’s third-quarter earnings suggests a decline of 21.7% from the year-ago quarter’s reported figure.
Anheuser-Busch InBev (BUD - Free Report) , alias AB InBev, currently has an Earnings ESP of +1.22% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings moved south by a penny in the last seven days to 82 cents per share. However, the consensus estimate indicates growth of 64% from the year-ago quarter's reported number.
AB InBev’s top line is expected to have risen year over year. The Zacks Consensus Estimate for BUD’s quarterly revenues is pegged at $15.2 billion, suggesting growth of 6.8% from the figure reported in the prior-year quarter. BUD has delivered an earnings beat of 2.4%, on average, in the trailing four quarters.
Albertsons Companies (ACI - Free Report) currently has an Earnings ESP of +1.15% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $17.6 billion, which suggests a rise of 6.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has been unchanged at 62 cents per share in the past 30 days. The consensus mark for ACI suggests a 3.1% decline from the year-ago quarter’s reported number. ACI has delivered an earnings beat of 25.7%, on average, in the trailing four quarters.
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High Demand & Solid Pricing to Aid PepsiCo's (PEP) Q3 Earnings
PepsiCo, Inc. (PEP - Free Report) is expected to register bottom and top-line growth when it reports third-quarter 2022 numbers on Oct 12, before the opening bell. The Zacks Consensus Estimate for third-quarter revenues is pegged at $20.9 billion, implying 3.3% growth from the year-ago quarter's reported figure.
For quarterly earnings, the Zacks Consensus Estimate is pegged at $1.84, suggesting 2.8% growth from the $1.79 reported in the prior-year quarter. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the company reported an earnings beat of 7.5%. It has delivered an earnings surprise of 3.8%, on average, in the trailing four quarters.
Key Factors to Note
Continued strength in its global beverage and convenient food businesses has been acting as the key growth driver for PepsiCo. Market share growth in the liquid refreshment beverage category, with share gains in the carbonated soft drinks, Ready-to-Drink Tea and water categories, are likely to have aided growth in the beverage category. Investments in innovation, pricing and execution also bode well.
The company’s food business has been gaining from revenue growth across core brands like Doritos, Lay’s, Ruffles, Tostitos and Cheetos. The Quaker business has been benefiting from market share gains in the rice and pasta, lite snacks, ready-to-eat cereal, and snack bar categories, as it has been capitalizing on the elevated demand for tasty products that deliver convenience and value.
Strong realized prices across all segments are likely to have resulted in pricing gains in the quarter. The company has been witnessing revenue growth across all segments, which is expected to have continued in the third quarter.
Also, PepsiCo’s cost-management and restructuring actions bode well. The company’s investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities to build competitive advantages have been boosting the top and bottom lines.
However, the company has been witnessing rising inflation stemming from the impacts of supply-chain disruptions as well as higher labor, transportation and commodity costs.
On its last reported quarter’s earnings call, PEP anticipated incremental input cost inflation for the quarter under review. Also, the adverse impacts of foreign currency have been concerning.
PepsiCo, Inc. Price and EPS Surprise
PepsiCo, Inc. price-eps-surprise | PepsiCo, Inc. Quote
Zacks Model
Our proven model conclusively predicts an earnings beat for PepsiCo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PepsiCo has a Zacks Rank #3 and an Earnings ESP of +0.47%.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat:
Philip Morris International (PM - Free Report) currently has an Earnings ESP of +1.77% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports third-quarter 2022 results. The consensus mark for PM’s quarterly revenues is pegged at $6.53 billion, which suggests a 14% dip from the figure reported in the prior-year quarter.
The consensus mark for Philip Morris’ quarterly earnings has moved up by a penny in the past 30 days to $1.23 per share. The consensus estimate for PM’s third-quarter earnings suggests a decline of 21.7% from the year-ago quarter’s reported figure.
Anheuser-Busch InBev (BUD - Free Report) , alias AB InBev, currently has an Earnings ESP of +1.22% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings moved south by a penny in the last seven days to 82 cents per share. However, the consensus estimate indicates growth of 64% from the year-ago quarter's reported number.
AB InBev’s top line is expected to have risen year over year. The Zacks Consensus Estimate for BUD’s quarterly revenues is pegged at $15.2 billion, suggesting growth of 6.8% from the figure reported in the prior-year quarter. BUD has delivered an earnings beat of 2.4%, on average, in the trailing four quarters.
Albertsons Companies (ACI - Free Report) currently has an Earnings ESP of +1.15% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $17.6 billion, which suggests a rise of 6.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has been unchanged at 62 cents per share in the past 30 days. The consensus mark for ACI suggests a 3.1% decline from the year-ago quarter’s reported number. ACI has delivered an earnings beat of 25.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.