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What to Expect From Pepsi Earnings

PepsiCo Inc. (NYSE: PEP) is scheduled to report its third-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters are $1.27 in earnings per share (EPS) on $16.22 billion in revenue. In the same period of the previous year, the company posted EPS of $1.36 and revenue of $17.22 billion.

This is a top consumer staples stock that fits the bill. Pepsi is a global snack and beverage company that manufactures and markets salty and convenient snacks, carbonated and non-carbonated beverages, and foods. Divisions were restated in 2008 to include Pepsi Americas Foods (including Frito-Lay), Pepsi Americas Beverages and Pepsi International. Key foreign sales exposures include the United Kingdom, Mexico, India and China. Brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Frito-Lay, Quaker, SoBe and Aquafina.

The company recently announced a partnership agreement with Starbucks to market, sell and distribute ready-to-drink (RTD) Starbucks coffee and energy beverages in Latin America, starting in 2016. Pepsi will use its expansive distribution network and local expertise in the region to sell and distribute Starbucks RTD beverages. These beverages will be available across the Caribbean, Chile, Colombia, Costa Rica, Guatemala, Mexico, Panama, Peru, Puerto Rico and Uruguay.

Ahead of earnings, a few analysts weighed in on Pepsi:

  • JPMorgan reiterated a Buy rating.
  • Nomura lowered its price target to $81 from $83.
  • Sterne Agee CRT has a Buy rating with a $108 price target.
  • Susquehanna downgraded the stock to Neutral and lowered its price target to $100 from $116.

So far in 2015, Pepsi is just barely positive on the year, with the stock up 1.8%. However, over the past 52 weeks the stock is up 4.6%.

Shares of PepsiCo were up 1% at $95.11 Monday morning. The stock has a consensus analyst price target of $104.62 and a 52-week trading range of $76.48 to $100.76.

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By Chris Lange