We are right in the middle of earnings season and tomorrow morning it will be PepsiCo Inc. (NYSE: PEP) that will get its chance to impress Wall Street. The soft drink giant will be releasing its second quarter earnings numbers ahead of Tuesday's opening bell.When Pepsi announces its quarterly numbers analysts are looking for the company to show earnings of $0.89 per share. The last time that the company released earnings numbers was back on April 25 when it was able to beat estimates for its first quarter by posting $0.65 per share, which was slightly above the $0.61 that analysts had been expecting to see.
The company has been moving more in the direction of non-carbonated drinks like water and juices for sales growth and tomorrow we should get a better idea of how that is working. The company's main competitor, Coca Cola Co. (NYSE: KO) has also been diversifying more away from sugar laden drinks, and the company was able to put up estimate-beating earnings last week. When Coca Cola reported its second quarter numbers the company showed $0.85 per share earnings, which was a little bit above the $0.82 that analysts had been hoping to see.
A couple of different analysts have recently stated that they feel good about Pepsi's chances to beat analyst estimates once again this quarter.
- John Faucher of J.P. Morgan said that he thinks the company has a good chance to beat estimates that he feels are low given recent strong earnings from competitors, and he also pointed out that Pepsi has a strong track record of estimate-beating earnings releases.
- Bryan Spillane from Banc of America Securities also is positive and stated that the second half of the year should give some relief to the company saying that "we think potential for improving growth in the back half of the year will make it more attractive."
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