PepsiCo Inc. (PEP, Financial) will release its financial results for the third quarter of fiscal 2017 before the New York Stock Exchange opens Oct. 4.
For the quarter in question, analysts forecast PepsiCo will report an EPS of $1.43. This figure is an average of 20 estimates of analysts who were surveyed and represents a 2.1% increase from the third quarter of fiscal 2016.
Source: Yahoo Finance
Analysts’ estimates on PepsiCo’s third-quarter earnings range between a low of $1.37 per share and a high of $1.47 per share.
Revenue is expected to come in at $16.31 billion, a 1.80% increase year over year.
Source: Yahoo Finance
The forecast on third quarter of fiscal 2017 revenue is an average of 16 estimates that range between a low of $15.77 billion and a high of $16.61 billion.
Sluggish growth in the company’s revenue was the cause of a slim 2.5% development in the share price of PepsiCo over the last 12 months, but increasing operating margins as a response to programs of cost savings and PepsiCo’s efforts to revitalize sales by remodeling its portfolio of products and through the launch of new products, should be highly supportive to the market value of PepsiCo.
For the fiscal 2017 to fiscal 2018 period, analysts forecast a 7.80% increase in PepsiCo’s sales while an average growth of 6.40% is foreseen every year in the company’s revenue for the next five years.
GuruFocus gives PepsiCo a profitability and growth rating of 7 out of 10.
The company will also provide its shareholders with an update of its balance sheet that as of the second fiscal quarter was characterized by an amount of $17.16 billion in cash on hand and securities, or $12.04 per share, and $39.48 billion in total debt, of which 79% is long-term debt, for a total debt-equity ratio of 315.12%. PepsiCo is one of the most leveraged companies in the industry. The latter has an average value for total debt-equity ratio of 106.97%.
As of the most recent quarter, PepsiCo has total current assets and liabilities valued $29.248 billion and $22.113 billion for a current ratio of 1.32 versus an industry average of 1.28.
GuruFocus assigns PepsiCo a financial strength rating of 5 out of 10.
PepsiCo is trading at $111.43 per share with a market capitalization of $158.84 billion, a price-book (P/B) ratio of 12.85, a price-sales (P/S) ratio of 2.54 and a price-earnings (P/E) ratio of 23.66.
The forward P/E ratio is 23.66.
The company distribute an annual dividend of $3.22 – through quarterly payments of 80.5 cents – for a dividend yield of 2.88%.
Disclosure: I have no positions in PepsiCo.
