Headquartered in New York, PepsiCo, Inc. (PEP) boasts a global presence with its wide-ranging portfolio of beverages and convenient foods. With a substantial market cap of $199.5 billion, the company is set to release its fiscal Q4 earnings before the market opens on Tuesday, Feb. 4.
Ahead of the event, analysts expect PepsiCo to report a profit of $1.95 per share, a 9.6% jump from $1.78 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s bottom-line estimates in each of the last four quarters.
For fiscal 2024, analysts expect PepsiCo to report an EPS of $8.15, up 7% from $7.62 in fiscal 2023. Fiscal 2025 EPS is expected to grow 5.4% annually to $8.59.
PEP stock has plunged 13.4% over the past year, lagging behind the broader S&P 500 Index's ($SPX) 24.2% gain. However, the stock has outpaced the S&P 500 Consumer Staples Sector SPDR’s (XLP) 6.7 return over the same time frame.
PepsiCo's lackluster price performance this year can be attributed to fierce competition, a growing consumer shift toward healthier options, rising costs, and reduced consumer spending in crucial markets. These challenges have strained its core snack and beverage segments, even as the company invests in and pivots toward healthier product offerings.
Nevertheless, PepsiCo's shares rose 1.9% on Oct. 8, driven by its Q3 earnings beat, with core EPS of $2.31 surpassing analyst expectations and increasing 2.7% year-over-year. Although the company reported lower-than-expected revenue of $23.3 billion, it delivered robust international results, achieving 4% organic revenue growth and notable volume increases.
Analysts remain cautiously optimistic about PepsiCo’s stock, with an overall “Moderate Buy” consensus rating. Out of 20 analysts covering the stock, 10 remain upbeat, advising a “Strong Buy” rating, nine suggest a “Hold,” while the remaining analyst gives it a “Strong Sell.”
The average analyst price target for PepsiCo is $181.78, indicating a potential upside of 24% from the current price levels.
