PepsiCo (PEP) will report third quarter results tomorrow morning and host a call at 9:30.

Capital IQ Consensus calls for Q3 adjusted EPS of $1.57 (vs. $1.48 last year) with revenue up 0.9% to $16.38 billion. PepsiCo has beat expectations on the top and bottom line three quarters in a row.

  • Organic revenue growth ticked up to 2.6% last quarter.

  • Growth overseas and at Frito Lay North America (+4%) was offset by a 1% decline in North American Beverage (NAB) and a 5% decline in Quaker Foods North America.

  • North American Beverage organic sales improved from -2% sequentially as volume declines improved to -2% from -3%. 

The Street currently expects FY18 core EPS of $5.70 with revenue up 2% to $64.8 billion. 

On August 20, PepsiCo announced the $3.2 billion acquisition of SodaStream (SODA).  


PEP has a $158 billion market cap, the stock trades at 19x EPS, PEP has 3.3% dividend yield.