Advertisement
Advertisement

Earnings Week Ahead: PepsiCo, Acuity Brands and Constellation Brands in Focus

By:
Vivek Kumar
Published: Oct 3, 2021, 07:05 UTC

Following is a list of company earnings scheduled for release Oct 4-8, along with earnings previews for select companies. Next week’s earnings are probably not much significant for major market movements, but it is adequate to gauge investors’ sentiment.

Constellation Brands

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.

About the Author

Vivek has over five years of experience in working for the financial market as a strategist and economist.

Did you find this article useful?

Advertisement