Earnings Week Ahead: PepsiCo, Acuity Brands and Constellation Brands in Focus
- Monday (October 4)
- Tuesday (October 5)
- Wednesday (October 6)
- Thursday (October 7)
- Friday (October 8)
Earnings Calendar For The Week Of October 4
Monday (October 4)
No major earnings are scheduled for release.
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Tuesday (October 5)
IN THE SPOTLIGHT: PEPSICO
The Harrison, New York-based global food and beverage leader PepsiCo is expected to report its third-quarter earnings of $1.72 per share, which represents year-over-year growth of about 4% from $1.66 per share seen in the same quarter a year ago.
The U.S. multinational food, snack, and beverage corporation would post revenue growth of about 7% to $19.3 billion. In the last four consecutive quarters, on average, the company which holds approximately a 32% share of the U.S. soft drink industry has delivered an earnings surprise of over 8%.
“We expect another PepsiCo (PEP) EPS beat in Q3, and another quarter of strong organic sales growth confirming higher LT topline growth after Pepsi’s reinvestment in marketing/cap-ex in recent years. Valuation still looks compelling with Pepsi at only a ~3% CY23 EV/EBITDA premium to lower growth food peers,” noted Dara Mohsenian, Equity Analyst at Morgan Stanley.
“We are increasingly confident in a sustained pickup in organic sales growth at PepsiCo (PEP) longer-term, driven by favourable strategic changes under a relatively new CEO (Ramon Laguarta), including higher reinvestment in the business in marketing/cap-ex, PEP’s mix shift to the higher growth/ higher margin snacks category (representing ~2/3 of PEP’s profit), as well as improving topline trends in beverages post COVID, due to a category rebound and sequentially improving PEP market share performance. As shown below, PEP 2-Yr average organic sales growth accelerated during Laguarta’s tenure from 3% in 2017 and 2018 pre his arrival steadily to 4.1% in 2019 and 4.4% in 2020 post strategy changes, and further to 5.8% in H1 of 2021.”
TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 5
Ticker | Company | EPS Forecast |
PEP | PepsiCo | $1.73 |
Wednesday (October 6)
IN THE SPOTLIGHT: CONSTELLATION BRANDS, ACUITY BRANDS
CONSTELLATION BRANDS: The New York-based Fortune 500 international beverage alcohol company is expected to report its fiscal second-quarter earnings of $2.78 per share, which represents year-over-year growth of about 1% from $2.76 per share seen in the same quarter a year ago. The corona beer marker’s revenue is predicted to rise nearly 4% to around $2.34 billion.
“We rate Constellation Brands (STZ) Overweight. Valuation in our minds does not reflect STZ’s strong LT topline growth outlook with the beer segment returning to HSD% depletion growth in FY22 and beyond, an improved wine/spirits outlook post the low-end divestiture, and a return to share repurchases,” noted Dara Mohsenian, equity analyst at Morgan Stanley.
ACUITY BRANDS: The lighting and building management firm is expected to report its fiscal fourth-quarter earnings of $2.88 per share, which represents year-over-year growth of over 22%, up from $2.35 per share seen in the same period a year ago.
The Atlanta, Georgia-based company would post year-over-year revenue growth of nearly 10% to around $975 million.
TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 6
Ticker | Company | EPS Forecast |
TSCO | Tesco | £6.25 |
STZ | Constellation Brands | $2.78 |
RPM | RPM International | $1.04 |
AYI | Acuity Brands | $2.88 |
LW | Lamb Weston Holdings Inc | $0.39 |
AONNY | Aeon ADR | -$0.02 |
Thursday (October 7)
Ticker | Company | EPS Forecast |
CAG | Conagra Foods | $0.48 |
HELE | Helen Of Troy | $2.24 |
Friday (October 8)
No major earnings are scheduled for release.