Purchase, New York-based PepsiCo, Inc. (PEP) makes, markets, distributes and sells various beverages and convenient foods worldwide. With a market cap of $192.4 billion, PepsiCo owns various world-renowned brands including Lay's, Doritos, Pepsi, Kurkure, Lipton, Quaker, 7UP, and more.
The food and beverage giant is set to unveil its first-quarter results before the market opens on Thursday, Apr. 24. Ahead of the event, analysts expect PEP to report a non-GAAP EPS of $1.51, down 6.2% from $1.61 reported in the year-ago quarter. On a positive note, PEP has surpassed the Street’s bottom-line expectations in each of the past four quarters.
For the full fiscal 2025, PepsiCo is expected to deliver a non-GAAP EPS of $8.27, up a modest 1.4% from $8.16 in fiscal 2024. In fiscal 2026, PepsiCo’s earnings are expected to surge 6.4% year-over-year to $8.80 per share.
PepsiCo’s stock prices have plunged 14.7% over the past 52 weeks, significantly underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.3% gains and the S&P 500 Index’s ($SPX) 4.7% returns during the same time frame.
PepsiCo’s stock prices dropped 4.5% after the release of its Q4 results on Feb. 4. Due to the ongoing demand softness, the company’s beverages as well as convenient food volumes have continued to disappoint. Its overall topline dipped 24 bps year-over-year to $27.8 billion, which fell short of Street’s expectations by a small margin. However, its non-GAAP EPS increased 10.1% year-over-year to $1.96, surpassing the consensus estimates by a modest 51 bps. Meanwhile, during the full fiscal 2024, the company’s operating cash flows decreased nearly 7% year-over-year to $12.5 billion, which unsettled investor confidence.
Nonetheless, analysts remain optimistic about the stock’s prospects. The consensus opinion on PEP is moderately bullish, with a “Moderate Buy” rating overall. Out of the 20 analysts covering the stock, opinions include eight “Strong Buys,” 11 “Holds,” and one “Strong Sell.” Its mean price target of $162.10 suggests an 11.3% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
