PepsiCo Sets July 9 Q2 Release as Analysts Lift EPS Forecasts
PEP•Analysts have revised PepsiCo’s Q2 earnings forecasts upward ahead of its July 9 pre-market release, anticipating stronger per-share growth. Beverage rival Coca-Cola reported 10% organic revenue growth, an 18% EPS increase and a 30bp gross margin decline as it shifts from pricing power to balanced volume-price growth.
1. Analyst Forecast Revisions
Analysts tracking PepsiCo have increased second-quarter EPS estimates in advance of the July 9 pre-market report, driven by stronger beverage demand and updated volume-price mix assumptions. These upward revisions reflect confidence in unit case growth holding up against ongoing cost pressures.
2. Rival’s Strategic Shift
Coca-Cola delivered a 10% gain in organic revenue and an 18% jump in like-for-like EPS while experiencing a 30bp gross margin contraction, marking its move from aggressive pricing power toward a balanced growth algorithm. This pivot underscores emerging profitability challenges across major beverage players.
3. Implications for PepsiCo
As PepsiCo prepares to publish Q2 results, investors will assess whether it can maintain margin expansion through pricing strength or lean on case volume growth to counter rising input costs. A margin squeeze similar to its peer’s could pressure PepsiCo’s valuation and shape guidance for the remainder of the fiscal year.
