Core Insights - PepsiCo, Inc. is anticipated to report declines in both revenue and earnings for the second quarter of 2025, with revenues expected at $22.4 billion, reflecting a 0.5% year-over-year decrease, and earnings per share (EPS) projected at $2.04, indicating a 10.5% decline from the previous year [1][2][10] Financial Performance - The Zacks Consensus Estimate for second-quarter revenues is $22.4 billion, down 0.5% from the same quarter last year [2] - The consensus estimate for quarterly earnings is $2.04, suggesting a 10.5% decline from the $2.28 reported in the prior-year quarter [2] - The company experienced a negative earnings surprise of 1.3% in the last reported quarter, with an average earnings surprise of 1.4% over the trailing four quarters [2] Operational Challenges - PepsiCo is facing multiple headwinds, particularly in its North America operations, which have been struggling since early 2024 due to underwhelming results in the PepsiCo Foods North America (PFNA) segment and a decline in Asia Pacific Foods [5][10] - The weakness in the PFNA segment is largely attributed to reduced demand for Frito-Lay products as consumers become more inflation-conscious and cut back on discretionary spending [6][7] - Consumer sentiment remains cautious, with inflationary pressures leading to more value-driven purchasing behavior, particularly in North America [7] Cost Environment - The company is contending with a challenging cost environment in 2025, driven by rising supply-chain expenses and increased tariffs on globally sourced inputs [8][9] - Incremental cost pressures related to sourcing key ingredients and materials are exacerbated by shifting international trade dynamics [8] - The combination of escalating global logistics costs and geopolitical uncertainty is disrupting pricing and procurement strategies, potentially eroding margins [9] Profitability Outlook - PepsiCo's second-quarter results are expected to reflect margin pressure due to the timing and phasing of productivity initiatives, with adjusted gross profit anticipated to decline by 0.8% year-over-year and adjusted operating income expected to fall by 9.6% [11][12] - Despite ongoing cost discipline, the company's core profitability appears temporarily constrained due to elevated supply-chain costs and tariff-related headwinds [11] Growth Drivers - PepsiCo benefits from a strong core product portfolio, diversified operations, modernized supply chain, and enhanced digital capabilities, with its international business contributing approximately 40% to total net revenues [13] - The International Beverages Franchise segment is projected to see a 2% year-over-year revenue improvement in the second quarter of 2025 [14] - The company aims to achieve productivity goals through savings from restructuring actions, which are expected to drive top-line growth and improve margins [14] Stock Performance and Valuation - PepsiCo shares have underperformed in the past three months, losing 7.3%, compared to a 5.2% decline in the broader industry and a 1.1% decline in the Consumer Staples sector [15] - The stock is currently trading at a forward P/E ratio of 16.83X, which is below the S&P 500's average of 22.64X and the broader industry's average of 18X [20] - The valuation on a forward 12-month P/E basis reflects a significant discount to the market, although this may indicate underlying issues rather than a clear investment opportunity [22] Investment Outlook - Despite consistent revenue growth and strong profitability driven by a diverse product portfolio, external risks such as inflationary pressures and operational challenges in North America warrant a cautious investment outlook [23][24] - The company’s strong international momentum, investments in digital transformation, and product innovation may serve as meaningful tailwinds [26] - A wait-and-watch approach may be prudent as investors assess how the company navigates current challenges and leverages growth drivers post-earnings [27]

Key Takeaways Citigroup is expected to post y/y growth in 2Q25 revenues and earnings. C projects rising IB and markets revenues despite macro headwinds and tariff-related uncertainty Credit reserves and non-accrual loans are expected to rise, signaling pressure on asset quality.Citigroup Inc. (C) is slated to report second-quarter 2025 results on July 15, 2025, before market open. In the first quarter, Citigroup witnessed increases in net interest income (NII) and non-interest revenues. The company also r ...

Core Insights - United Airlines Holdings, Inc. (UAL) is set to report its second-quarter 2025 results on July 16, with a history of positive earnings surprises, averaging a beat of 10.34% over the last four quarters [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for UAL's Q2 2025 earnings has been revised down by 1.57% to $3.75 per share, indicating a 9.42% decrease from the previous year's actual earnings [3][5]. - UAL's revenue for Q2 2025 is estimated at $15.31 billion, reflecting a 2.17% year-over-year growth, supported by improving travel demand and lower fuel prices [7]. Cost and Economic Factors - UAL is expected to face challenges from a tariff-induced macroeconomic environment, with geopolitical uncertainties and inflation likely impacting travel demand [4][6]. - Labor costs are projected to rise, contributing to an 8.8% increase in operating costs compared to Q2 2024, driven by a 10.5% rise in salaries and related expenses [6]. Oil Prices and Industry Impact - The decline in oil prices, which fell 6% in the April-June 2025 period and 9% since the start of 2025, is seen as beneficial for the aviation industry, as fuel expenses are a significant cost factor [8]. Earnings Prediction Model - The current model indicates a potential earnings beat for UAL, with an Earnings ESP of +3.43% and a Zacks Rank of 3, suggesting a favorable outlook for the upcoming earnings report [9].

Wall Street expects a year-over-year increase in earnings on higher revenues when Abbott (ABT) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 17, might help the stock move higher if these key numbers are better than expectations. On th ...

The market expects Elevance Health (ELV) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

The market expects U.S. Bancorp (USB) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

The market expects Webster Financial (WBS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 17, might help the stock move higher if these key numbers are bett ...

The market expects BancFirst (BANF) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the ...

Karooooo Ltd. (KARO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may ...

Key Takeaways Wells Fargo will report 2Q25 earnings on July 15, with EPS expected to rise 5.3% year over year. The Fed removed WFC's $1.95T asset cap in June, ending a major post-scandal growth restriction. Q2 revenues are estimated at $20.7B, with a rise in NII and non-interest revenues, along with lower expenses.Wells Fargo & Company (WFC) is slated to report second-quarter 2025 results on July 15, 2025, before market open.Among Wells Fargo’s close peers, Bank of America (BAC) is slated to announce quar ...