Will strengthening product sales offset the supply chain headwinds for PepsiCo Q4 earnings?
PepsiCo (NASDAQ:PEP) is scheduled to announce Q4 earnings results on Thursday, February 10th, before market open.
The consensus EPS Estimate is $1.52 (+3.4% Y/Y) and the consensus Revenue Estimate is $24.24B (+7.9% Y/Y).
Over the last 2 years, PEP has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.

Over the last 3 months, EPS estimates have seen 6 upward revisions and 3 downward. Revenue estimates have seen 5 upward revisions and 5 downward.
While Pepsi is gaining from the strength in its global snacks and foods business and beverage category growth, the company is currently troubled with supply chain headwinds which have thus increased costs and constrained output.
The company's strength lies in its North American divisions:



The increased consumer mobility, reopening of the away-from-home channel, continued strong demand in the at-home channels and improved price/mix are likely to have aided sales of soft drink makers in Q4.
To offset the same, the company has implemented price increases of its own and will continue to do so throughout Q4.
Rising inflationary trends is also a concern for the company's highly linked product sales.
In its latest conference presentation, the company sees a 9% share of PepsiCo in the global beverages opportunity which is expected to grow at a 5-year CAGR of +4-5%; Global snacks opportunity is seen at a 5-year estimated CAGR of 4-5% with PepsiCo share at 7%.
In the past 6-months, the stock gained 11.5% and is currently trading near its 52-week high levels.
SA Contributor Daniel SchÃ¶nberger with a Hold rating recently wrote that the company is also overvalued while SA Contributor Gen Alpha believes that the company is easily a buy-and-hold forever stock.