It's about that time again: Pepsi vs. Coke. No, not another taste test or another Battle of the Brands. It's time for the next quarterly results from these two soft drink titans.
Analysts surveyed by Thomson Reuters anticipate that PepsiCo Inc. (NYSE: PEP), global beverage and snack food giant, will report fourth-quarter earnings this week that are 9.1% higher that a year ago, or $0.88 per share. Revenue is expected to total $12.8 billion, which is 3.9% higher than last year. For the full year, the profit is expected to be $3.67 per share on revenue of $43.4 billion, up from $3.38 per share on $39.5 billion in 2007. PepsiCo's earnings met or beat estimates in four of the past five quarters, but missed by only two cents per share in the third quarter. The consensus recommendation of analysts remains to buy PEP. The share price fell to a 52-week low in January and is now 24.4% lower than it was a year ago. During the fourth quarter, PepsiCo declared a $0.42 per share quarterly dividend, agreed to acquire a Spitz International, and announced investments in China and Mexico.
For the quarter that saw a new chairman and the launch of Sprite Green, Atlanta-based Coca-Cola Co. (NYSE: KO) is expected to report a fourth-quarter profit of $0.62 per share, which is 6.5% higher than in the year-ago period. Revenue for the quarter is expected to come to $7.6 billion, 4.1% higher than last year. For the full year, the profit is expected to be $3.13 per share on revenue of $32.5 billion, up from $2.70 per share on $28.9 billion in 2007. Coca-Cola's earnings beat estimates in the past five quarters, by as much as 7.8%. The consensus recommendation of analysts remains to buy KO. The share price has been trading just above the 52-week low and is 21.6% lower than it was a year ago.
So for you, is it Coke or Pepsi? Wait, there's more.
Pepsi bottler and distributor Pepsi Bottling Group Inc. (NYSE: PBG), which recently announced restructuring initiatives, is expected to post a fourth-quarter profit of $0.25 per share, which is 35.9% lower than in the year-ago period. Revenue for the quarter is expected to come to $3.9 billion, which is 2.2% lower than last year. But for the full year, the profit is expected to be $2.22 per share on revenue of $13.9 billion, up from $2.20 per share on $13.6 billion in 2007. Pepsi Bottling's earnings topped estimates in the past five quarters, by as much as nine cents per share. The consensus recommendation remains to hold PBG. The share price has fallen 5.0% in the past three months and is 39.3% lower than it was a year ago. Also, Pepsi Bottling completed acquisition of a rival in the fourth quarter.
Coca-Cola Enterprises Inc. (NYSE: CCE), the world's largest bottler and distributor of Coke, is expected to report fourth-quarter earnings of $0.19 per share and revenue of $5.2 billion. That compares to $0.29 per share on $5.3 billion in the year-ago period. For the full year, the profit is expected to total $1.29 per share (in line with previous guidance) on revenue of $21.8 billion, compared to $1.39 per share and $20.9 billion in 2007. The Atlanta-based company's earnings beat estimates in four of the past five quarters. The consensus recommendation of analysts is to hold CCE. While the share price rose 27.6% in the past three months, it is 46.2% lower than it was a year ago.
But it won't be all corn syrup and fizz this week. The parade of anticipated earnings decliners continues this week with Molson Coors Brewing Co. (NYSE: TAP), Hasbro Inc. (NYSE: HAS), Marriott International Inc. (NYSE: MAR), Abercrombie & Fitch Co. (NYSE: ANF), Whirlpool Corp. (NYSE: WHR), ArcelorMittal (NYSE: MT), NYSE Euronext Inc. (NYSE: NYX), Applied Materials Inc. (NASDAQ: AMAT), Cheesecake Factory Inc. (NYSE: CAKE), and others.
However, there are some expected earnings gainers too, if one knows where to look: Nordic American Tanker Shipping Ltd. (NYSE: NAT), Dean Foods Co. (NYSE: DF), Panera Bread Co. (NASDAQ: PNRA), McAfee Inc. (NYSE: MFE), Aetna Inc. (NYSE: AET), DirecTV Group Inc. (NASDAQ: DTV), and Buffalo Wild Wings Inc. (NASDAQ: BWLD). There are even a few companies that analysts expect to have swung into the black in the most recent quarter, such as phosphates producer Innophos Holdings Inc. (NYSE: IPHS), Energy Conversion Devices Inc. (NASDAQ: ENER), Coinstar Inc. (NYSE: CSTR), and supercomputer maker Cray Inc. (NASDAQ: CRAY).
And while homebuilder Beazer Homes USA Inc. (NYSE: BZH) and Swiss bank UBS (NYSE: UBS) are not expected to make it into the black, they appear to be headed in the right direction.
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