Here Is Why PepsiCo Stock Is a Good Bet before the Quarterly Earnings Report
Beverage and food retailer PepsiCo will release a third quarter earnings report on Tuesday, and they might be a good choice for investors.
On Tuesday, October 8th, PepsiCo (PEP) will be releasing its quarterly earnings report, and some small growth is expected compared to the previous year.
The company should report improvement in profits and revenue, but they do not expect major improvement because of the increase in value-focused spending. Light improvement may be enough to give the stock a boost. Right now, the PEP stock is trading at $168 with a 0.12% increase from the previous day. We expect the stock price to ramp up closer to the earnings report release, which will be right before trading starts on Tuesday.
Big News from PepsiCo
At the beginning of the month, PepsiCo announced that they would be acquiring Siete for $1.2 billion. This is a Mexican American food manufacturer with a strong presence throughout the United States. News of the acquisition caused the PEP price to tick higher on Tuesday.
A statement from PepsiCo said that buying the company, which is based in Austin, Texas, will help them expand their offerings of authentic cultural foods and healthy foods.
The Latino business Siete has done well over the last few years, growing rapidly and expanding through the country as it offers a healthier take on many traditional Mexican foods. PepsiCo could experience excellent customer growth from this addition to their lineup.
Expected Numbers for the Third Quarter
What do we expect PepsiCo to report on Tuesday for the third fiscal quarter? They should give a revenue figure of about $23.8 billion, which would be a slight increase from last year’s $23.4 billion for the same quarter. Net income is also expected to increase.
PepsiCo did drop its growth projections last quarter when they saw that consumers were more conscious of the value of their money and how they were spending. The company had originally expected growth of at least 4%, but then updated that projection to say that 4% was the maximum growth they anticipated.
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