Snack and beverage giant PepsiCo Inc. is scheduled to announce its first-quarter earnings before the market opens Wednesday. Here's what you need to know:
EARNINGS FORECAST: Earnings of 91 cents a share is the consensus of analysts surveyed by Thomson Reuters, compared with 89 cents a share a year earlier.
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REVENUE FORECAST: Analysts expect revenue of $12.0 billion, compared with $11.9 billion a year earlier.
WHAT TO WATCH
AD FALLOUT: Pepsi earlier this month yanked a commercial after a backlash swept across social media. The 2 1/2 -minute spot was developed by Pepsi's in-house Creators League Studio. Analysts will be curious to hear how the company plans to pivot from its marketing misstep.
SODA TAXES: Pepsi said in March that it would lay off 80 to 100 workers at three distribution plants, as a result of what it described as a sales slump prompted by Philadelphia's tax on sugary and sweetened drinks. The company may discuss how it plans to address the issue of soda taxes as other municipalities, including Chicago's Cook County and San Francisco, prepare to implement similar taxes.
BOTTLED WATER: As bottled water consumption outpaces soda in the U.S. for the first time, Pepsi is trying to get a piece of the premium bottled-water category with LIFEWTR, launched with a Super Bowl ad this year to compete with Coca-Cola Co.'s smartwater. Pepsi will likely give an update on the new brand's sales results.
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(END) Dow Jones Newswires
April 25, 2017 06:14 ET (10:14 GMT)