Shares of Pepsi (
) underperformed the stock market on Wednesday ahead of the
company's first-quarter earnings report, due out on Thursday before
the market opens. The stock closed up 0.26 percent to $66.68,
rather sharply below the 1.4 percent gain in the S&P 500 and
0.7 percent gain in the Dow.
Analysts are looking for Pepsi to report a decline of about 6
percent in quarterly earnings to 67 cents per share on revenue of
$12.36 billion. Pepsi posted sales of $11.94 billion in the same
quarter last year.
Data from StreetInsider.com's
page shows Pepsi has beaten Wall Street's quarterly estimates by
about 1 percent over the last four quarters.
Bloomberg data shows 12 analysts with a Buy rating on Pepsi shares
ahead of the results, eight with a Hold rating, and one
recommending investors sell the stock. Analyst's average price
target currently sits at about $68.50.
- Sees EPS of 64 cents. Called the first quarter "the toughest
quarter of the year from a gross margin standpoint," down about
140 basis points from the same quarter last year. JPMorgan sees
sales driven largely by double-digit international growth.
Maintains an Overweight rating into the print.
- Sees EPS of 65 cents. Warned not to expect upside in the
quarter. Goldman said, "This is PEP's first print following the
official 'Reset' meeting, so managing investor expectations is
key. We think a meaningful beat is unlikely and expect a
cautiously optimistic tone."
Maintains Market Perform rating.
- Modeling for EPS of 67 cents. Sees 1.2 points of core volume
growth, and gross margin down 2.7 points "as input costs are only
partially offset by pricing, while operating margin should be
down 1.3 points on lower SG&A ratio despite stepped up brand
On the broader Beverage sector, the firm voiced concerned about a
US macro recovery, saying "we certainly aren't seeing it in our
consumer staples coverage universe and there are signs of further
slowdown in Europe, with competition intensifying in developing
Maintains a Buy.
Stay tuned to our
category to get the Pepsi results within seconds of the release.
The company generally reports right at 7am ET.