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PepsiCo to report Q3 results

PepsiCo will report its third-quarter earnings on Thursday 9 October at 12pm. The consensus is for revenue of $17.16 billion and earnings per share of $1.29.

Pepsi bottles
Source: Bloomberg

PepsiCo is trading at $93.15; the share price is up 4.5% since it reported its second-quarter figures in July when its revenue came in at $16.89 billion and EPS at $1.32, exceeding estimates.

The company which owns well-known brands like Pepsi-Cola, Gatorade and Tropicana, revealed a 2% increase in organic sales across its beverage business. PepsiCo also owns a snacks business which saw revenues increase by 2.5%, while the drinks division reported a 2% drop in sales.

The CEO, Indra Nooyi, has acknowledged that the soft drinks business in North America is under pressure. Mrs Nooyi suggested the company is looking into ways to reduce the number of calories in its soft drinks.

Well known investor Nelson Peltz has stated that PepsiCo should acquire Mondelez International, who own Oreo cookies, and break the companies into the separate entities, as he feels the beverage division is weighing on the company.

Equity analysts are very bullish on PepsiCo. Out of the 31 ratings 19 are buys, 11 are holds and only one is a sell.

The stock is receiving support at $91.66, and if the results are good the share price could target $100.

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