PepsiCo (PEP) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - PepsiCo is expected to report a decline in quarterly earnings and revenues, with earnings per share projected at $2.03, down 11% year-over-year, and revenues forecasted at $22.37 billion, a decrease of 0.6% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.1% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts project 'Net Revenue- PBNA (PepsiCo Beverages North America)' to reach $6.84 billion, reflecting a year-over-year increase of 0.5% [5]. - 'Net Revenue- PFNA (PepsiCo Foods North America)' is estimated at $6.40 billion, indicating a significant year-over-year increase of 1040.2% [5]. - 'Net Revenue- LatAm Foods' is expected to be $2.50 billion, showing a year-over-year decline of 17.8% [5]. Stock Performance - PepsiCo shares have increased by 3.2% over the past month, compared to a 5% increase in the Zacks S&P 500 composite [6]. - With a Zacks Rank of 3 (Hold), PepsiCo is anticipated to closely follow overall market performance in the near term [6].