Thursday, March 28, 2013

Are You Expecting This from Pepsico?

Pepsico (NYSE: PEP  ) is expected to report Q4 earnings on Feb. 14. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Pepsico's revenues will contract -2.3% and EPS will contract -7.8%.

The average estimate for revenue is $19.70 billion. On the bottom line, the average EPS estimate is $1.06.

Revenue details
Last quarter, Pepsico logged revenue of $16.65 billion. GAAP reported sales were 5.3% lower than the prior-year quarter's $17.58 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.20. GAAP EPS of $1.21 for Q3 were 3.2% lower than the prior-year quarter's $1.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 53.0%, 110 basis points better than the prior-year quarter. Operating margin was 17.3%, 50 basis points better than the prior-year quarter. Net margin was 11.4%, about the same as the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $65.31 billion. The average EPS estimate is $4.07.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,400 members out of 4,555 rating the stock outperform, and 155 members rating it underperform. Among 1,232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,200 give Pepsico a green thumbs-up, and 32 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pepsico is outperform, with an average price target of $74.91.

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