Categories AlphaGraphs, Analysis, Earnings, Retail

Earnings preview: What to expect when PepsiCo reports Q2 2019 results?

PepsiCo Inc. (NASDAQ: PEP) is scheduled to report second quarter 2019 earnings results on Tuesday, July 9, before market open. Earnings are estimated to decline 7.5% year-over-year to $1.49 per share while revenues are projected to increase 2% to $16.4 billion. Over the trailing four quarters, the company has topped earnings estimates three times.

PepsiCo’s topline results are expected to benefit from the strong performance of the snacks business, which continues to deliver solid revenues. The beverages business is also slightly gaining momentum and this could add to the gains in the quarter. However, the company continues to see weakness in the Quaker Foods North America segment which is likely to dent the topline.   

PepsiCo continues to boost its strong product portfolio through innovation and strategic partnerships. The company recently teamed up with Lavazza to launch iced coffee in the UK. PepsiCo’s diversification efforts through various acquisitions and partnerships are likely to pay off in driving growth going forward.

Although the company is dealing with changing customer preferences in the US, it is seeing growth outside the US, particularly in emerging markets. This growth is likely to prove beneficial to the results in the second quarter. PepsiCo has also been taking measures to reduce costs and this is likely to help profitability.

PepsiCo (PEP) reports upbeat Q1 earnings

In the first quarter of 2019, PepsiCo beat revenue and earnings estimates. Both revenue and adjusted EPS grew 3% year-over-year. The company posted revenue growth across all its segments, barring Quaker Foods North America and AMENA.

For the full year of 2019, PepsiCo expects organic revenue to grow 4% and core constant currency EPS to decline 1%. PepsiCo’s shares have gained 19% thus far this year and 23% over the trailing 52 weeks.   

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more! 

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top