PepsiCo (PEP) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - The market anticipates a year-over-year decline in PepsiCo's earnings despite an increase in revenues for the quarter ending September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - PepsiCo is expected to report quarterly earnings of $2.27 per share, reflecting a year-over-year decrease of 1.7%, while revenues are projected to reach $23.88 billion, an increase of 2.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.06% higher in the last 30 days, indicating a slight bullish sentiment among analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for PepsiCo is +0.49%, suggesting a higher Most Accurate Estimate compared to the Zacks Consensus Estimate, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, PepsiCo exceeded the expected earnings of $2.03 per share by delivering $2.12, resulting in a surprise of +4.43%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Additional Considerations - While an earnings beat may influence stock movement, other factors can also impact investor sentiment, making it essential to consider a range of elements before making investment decisions [15][17].