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soda


When worldwide soda and snack food giant PepsiCo Inc. (NYSE:PEPD) reports its Q2 results Thursday, investors could learn a great deal about global economic volatility.

That’s because Pepsi derives almost half its sales from outside the U.S including in the U.K., Russia and South America – all strong indicators of consumer sentiment.

Related: EARNINGS CALENDAR WEEK OF: JULY 4, 2016

Consumer Sentiment Key

Sales of soda reflect consumer attitude as much as any other product line, according to analyst Brian Sozzi. With a significant portion of Pepsi’s sales occurring outside the U.S., analysts believe an overall drop in sales by Pepsi could reflect negative worldwide consumer sentiment moving forward.

According to Thomson Reuters, Pepsi is expected to report quarterly earnings of $1.29 per-share, down from $1.32 in the year-earlier quarter. Revenue is expected to drop 3.4% to $15.37 billion. The primary driver, according to analysts, is weakened foreign currencies.

Uncertainty In The U.K.

Special note will be taken about anything Pepsi reveals about sales in the U.K. including whether the company revises earnings guidance upward (as it has done in the past). This would be especially noteworthy following the Brexit vote.

Consumer goods analyst, Jack Russo told The Wall Street Journal, “My guess is they probably won’t this time around, because there’s so much uncertainty globally."

Upcoming Additional Beverage Earnings

Investors and analysts alike will keep an eye on actual earnings reported by all 3 Coca-Cola enterprise formulations as well as Dr Pepper Snapple Snapple Group, Inc.

The 4 companies report toward the end of July and results should provide an even better overall view of worldwide consumer sentiment for the balance of 2016.

The Coca-Cola Co. (NYSE:KOD)

The Coca-Cola Co. is the world's largest beverage company and the leading producer and marketer of soft drinks. Consumers in nearly 200 countries enjoy Coke products at a rate of more than 1 billion servings per day.

KO is expected to report quarterly earnings July 27 of $0.59 per-share, down $0.04 from $0.63 in the year-earlier quarter. Revenue is expected to drop 3.7% to $11.07 billion.

Coca-Cola FEMSA S.A.B de C.V. (NYSE:KOFC)

Coca-Cola Femsa S.A., through its subsidiaries, produces, markets and distributes soft drinks throughout the metropolitan areas of Mexico City, in Southeastern Mexico and in metropolitan Buenos Aires, Argentina. KOF is set to report earnings July 27.

KOF is expected to report quarterly EPS of $0.84, identical to the year-earlier quarter. Revenue is expected to drop 10.2% to $2.14 billion.

Coca-Cola European Partners Plc (NYSE:CCEC)

Coca-Cola European Partners PLC produces and markets nonalcoholic beverages throughout much of Europe, including the U.K. The company reports earnings July 28.

Analysts believe CCE will show quarterly earnings per share of $0.72, down from $0.79 in the year-earlier quarter. Revenue, however, is expected to jump 56.3% to $3.01 billion.

This follows the merger of Coca-Cola Enterprises, Inc., Coca-Cola Iberian Partners S.A.U. and Coca-Cola Erfrischungsgetränke GmbH, which took place in May.

Related: HERSHEY GOES SOUR ON MONDELEZ’ SWEET DEAL

Dr Pepper Snapple Group, Inc. (NYSE:DPSD)

The Dr Pepper Snapple Group, one of the largest beverage companies in the Americas, also reports July 28.

The company, which manufactures, markets and distributes more than 50 brands of carbonated soft drinks, juices, ready to drink teas, mixers and premium beverages across the U.S., Canada, Mexico and the Caribbean is expected show a bump in both EPS and revenue.

Analysts expect quarterly earnings to be $1.20 per-share. This represents a $0.07 jump from actual EPS of $1.13 the same quarter a year ago. Revenue is expected to advance 1.8% to $1.68 billion.



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