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The Markets
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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Food & drink

PepsiCo 3Q results likely to reveal the benefit of pricing power in tight consumer environment

PepsiCo (NASDAQ:PEP) unbottles its third-quarter earnings ahead of the opening bell on Tuesday (October 10) and analysts expect a solid rise in revenue and earnings for the quarter.

While the beverage conglomerate has felt the impact of inflation on consumers’ pockets, it has been able to counter this with its pricing power for brands including Gatorade, Cheetos and Frito-Lay.

According to analysts ' consensus estimates, revenue for the quarter is likely to be 6.6% higher at $23.4 billion.

Earnings per share are expected to come in 10% higher at $2.17, based on the forecasts of six analysts surveyed by Zacks Investment Research.

With the release of its 2Q results in July, PepsiCo raised its outlook for full-year earnings, predicting a 12% increase year-over-year rather than the 9% previously stated.

Ahead of its results, the company’s shares were down 0.5% at $159.46 in early Monday afternoon trade.

Contact the author at stephen.gunnion@proactiveinvestors.com

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