Pepsi Bottling Group Inc. (NYSE: PBG), the world's largest manufacturer and distributor of Pepsi-Cola beverages, is scheduled to discuss its second quarter 2009 results tomorrow morning in a conference call at 11:00 AM ET. You can catch the live webcast of the call on the company's website.
For the quarter in which Pepsi Bottling Group saw a buyout offer from PepsiCo (NYSE: PEP) and completed an acquisition of its own, analysts polled by Thomson Reuters expect the company to report earnings of $0.73 per share, which is a nickel per share lower than in the same period of the previous year, as well as in line with previous guidance. Revenue for the quarter is expected to be 2.0% lower to $3.5 billion. The dividend-paying company has topped earnings estimates in the five past quarters, by as much as a nickle per share.
Analysts are so far looking for marginally higher profits for the third quarter and the full year, but also slightly lower sales for the same periods. But Pepsi Bottling Group has just announced that it will join PepsiCo in investing $1 billion in food and beverage businesses in Russia.
Analysts, on average, expect the food company's long-term EPS growth rate to be only 6.1%, but that's much better than the food and beverage industry average. The forward PE ratio estimate is 14.0. The First Call consensus recommendation remains to hold PBG, but one analyst recently upgraded it for its growth potential, even if it shrugs off PepsiCo's advances.
The share price hit a 52-week high of $34.80 before the Independence Day holiday, and it is about 50% higher since the beginning of the year.
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Reader Comments (Page 1 of 1)
7-07-2009 @ 11:31PM
Kent said...
Coke and Pepsi have odd-coupled relationships with their independent bottlers who appear almost as big as they are. The softdrink manufacturers appear to want to buy them out but without success. Must be a throwback relationship when logistics were a problem but not anymore.