Beverage and food giant PepsiCo Inc (PEP) is set to report its first-quarter financial results before the market opens on Tuesday. Analysts expect Pepsi to report first-quarter revenue of $18.08 billion, according to estimates from Benzinga Pro. The company reported revenue of $17.85 billion in last year’s first quarter. Pepsi beat revenue estimates from analysts in nine of the past 10 quarters.
Analysts expect Pepsi to report first-quarter earnings per share of $1.52, compared to $1.50 reported in last year’s first quarter. The company beat Street consensus estimates in 10 of the past 10 quarters.
A Quaker recall and slowdown of salty snacks could impact the first-quarter results from Pepsi, Wedbush analyst Gerald Pascarelli said in a new investor note. “Based on measured channel reads, we are modestly trimming our 1Q revenue estimate for PEP due to a larger than expected slowdown in salty snacks,” Pascarelli said.
Despite these concerns, analysts remain bullish on Pepsi’s long-term prospects, citing its international growth and strong brands. Barclays has an Overweight rating and a $184 price target, while Jefferies has a Buy rating and a $209 price target. Morgan Stanley upgraded Pepsi from Equal Weight to Overweight, with a $190 price target.
Pepsico shares were up 1.34% to $176.46 at market close Monday. Shares of Pepsi are up 4% year-to-date in 2024.
