PepsiCo, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PepsiCo, Inc. (NYSE:PEP) will unveil its latest earnings on Thursday, July 21, 2011. PepsiCo, Inc. is a global company that manufactures a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods. Coca-Cola Earnings Cheat Sheet: Revenue Up, Profit Up>>

PepsiCo, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.21 per share, a rise of 10% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.22. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.21 during the last month. For the year, analysts are projecting net income of $4.49 per share, a rise of 8.7% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 74 cents per share against a mean estimate of net income of 73 cents, and the quarter before, the company exceeded forecasts by one cent with profit of $1.05 versus a mean estimate of net income of $1.04.

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Wall St. Revenue Expectations: On average, analysts predict $16.41 billion in revenue this quarter, a rise of 10.9% from the year ago quarter. Analysts are forecasting total revenue of $65.91 billion for the year, a rise of 14% from last year’s revenue of $57.84 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 35.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 40% from the year earlier quarter.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 20.1% from the year earlier quarter, while the figure dropped 4.8% in the fourth quarter of the last fiscal year.

The company raised its gross margin by two percentage points in the in the first quarter. Revenue rose 27.4% while cost of sales rose 22% to $5.45 billion from a year earlier.

Competitors to Watch: The Coca-Cola Company (NYSE:KO), Dr Pepper Snapple Group Inc. (NYSE:DPS), Coca-Cola Enterprises Inc. (NYSE:CCE), Hansen Natural Corporation (NASDAQ:HANS), Reed’s, Inc. (NASDAQ:REED), Cott Corporation (NYSE:COT), National Beverage Corp. (NASDAQ:FIZZ), Jones Soda Co. (NASDAQ:JSDA), Celsius Holdings, Inc. (NASDAQ:CELH), and Fomento Economico Mexicano SAB (NYSE:FMX).

Stock Price Performance: During April 19, 2011 to July 20, 2011, the stock price had risen $2.16 (3%) from $66.33 to $68.49. It saw one of its worst periods between July 7, 2011 and July 15, 2011 when shares fell for seven-straight days, falling 2.8% (-$1.99) over that span. The stock price saw one of its best stretches over the last year between June 23, 2011 and June 30, 2011 when shares rose for six-straight days, rising 3.6% (+$2.45) over that span. Shares are up $3.16 (+4.84%) year to date.

(Source: Xignite Financials)

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