PepsiCo is scheduled to report third-quarter results before the market opens Thursday. Here is what you need to know.
NET INCOME: The snacks and soda maker is projected to post a profit of $3.11 billion, up from $2.6 billion in the same quarter last year, according to a consensus of analysts polled by FactSet.
ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $2.29 a share, in line with a year earlier.
REVENUE: Quarterly revenue is forecast to come in at $24.95 billion, ahead of the $23.94 billion it notched a year ago.
Shares have lost more than 14% of their value over the past three months and were recently trading hands at $124.32.
WHAT TO WATCH
--PepsiCo plans to raise prices on select chips, dips and sodas in the coming months, reversing its strategy from earlier this year, when it cut prices to win back snack customers. PepsiCo told Bloomberg, which reported on the planned price increases last month, that prices will remain lower than precut levels. Still, the strategic pivot has left analysts concerned and eager for clarity on the upcoming changes.
--PepsiCo will invest $1 billion in Colombia over the next five years, the South American nation's President Abelardo De La Espriella said last month. The investments will be aimed at expanding production, modernizing operations and strengthening distribution in the country, the president added. Investors will be looking for additional details on the planned investments.
--PepsiCo Chief Executive Ramon Laguarta said last quarter that the war in Iran has meaningfully affected business, with consumers buying fewer snacks as they pay more at the gas pump. Investors will be interested to know whether consumer sentiment has improved recently, seeing as gas prices have remained elevated.