PepsiCo Stock: A Look at Analysts’ Reaction to 4Q17 Results
Following the 4Q17 results, PEP stock was downgraded to “in line” from “outperform” by Evercore on February 14.
PepsiCo’s (PEP) gross margin declined in fiscal 4Q17, but its operating margin expanded on a year-over-year basis.
PepsiCo’s North America Beverages segment continued to be impacted by weak volumes.
PepsiCo (PEP) generated revenue of $19.5 billion in fiscal 4Q17. It surpassed the consensus Wall Street analyst revenue estimate of $19.4 billion.
In fiscal 4Q17, PepsiCo (PEP) beat analysts’ earnings expectations for the eighth consecutive quarter.
PepsiCo (PEP) announced its fiscal 4Q17 and fiscal 2017 results on February 13. It topped analysts’ revenue and earnings expectations.
A majority (52%) of the 27 analysts covering Coca-Cola (KO) stock have given it a “buy” rating as of February 12, 2018.
Coca-Cola’s (KO) forward valuation multiple has declined 6.3% since the announcement of its 3Q17 results in October 2017.
Coca-Cola (KO) has surpassed analysts’ earnings expectations in nine of the past 11 quarters.
Coca-Cola’s (KO) revenue of $9.1 billion in 3Q17 surpassed analysts’ estimate of $8.7 billion. However, it was the tenth consecutive quarter of decline.
Coca-Cola (KO) is set to announce its 4Q17 results on February 16, 2018. The soda giant’s stock has fallen 4.2% YTD as of February 12, 2018.
On January 29, SunTrust Robinson initiated coverage on PepsiCo stock with a “hold” recommendation and a target price of $125.00.
Currently, PepsiCo is trading at a lower valuation multiple than other major players in the non-alcoholic beverage space.
For fiscal 4Q17, analysts expect PepsiCo’s adjusted earnings per share to rise ~9.2% to $1.31. The growth is expected due to better margins.
PepsiCo’s (PEP) reported gross margin and operating margin improved in fiscal 3Q17, which ended on September 9, 2017.
Analysts expect PepsiCo’s 4Q17 revenue to fall 0.6% on a YoY basis to $19.4 billion. For fiscal 2017, analysts expect PepsiCo’s revenue to rise ~1.0%.
PepsiCo (PEP) will announce its fiscal 4Q17 results on February 13, 2018. As of February 6, PepsiCo stock has declined 5.3% since the beginning of 2018.
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