PepsiCo, Inc. (PEP) is expected to report earnings before the market opens on Thursday July 13, 2023. Wall Street expects the snacks and drinks company to earn $1.95 per share (EPS) with sales hitting $21.7 billion. Both forecasts are up from the same quarter last year’s $1.86 and $20.23 billion, EPS and revenue respectively. PEP has topped The Street’s earnings forecasts in the last four quarters, beating the number from $0.02 to $0.13. (1)
PEP is trying to recover from a $15 fall, slipping from $195 to $180 in the second half of May. Shares started a small uptrend in early June heading into the quarterly checkup. Meanwhile, shares have flattened out on the upside at $188. That’s called a triangle, flag, pennant… lots of names for the technical pattern but the storyline is all the same.
If next Thursday’s results and guidance are better than expected, PEP’s price should move through the top of the triangle and potentially challenge $190. Beyond that, Pepsi could challenge its 52-week-high of $196.88. To the downside with a negative surprise, $180 should be the first level of support, followed by the 200-day moving average of $177.25.
Trading earnings is highly speculative and only appropriate for the most aggressive investors who can afford to lose money in a short order.
Rich Meyers
1 – https://finance.yahoo.com/quote/PEP/analysis?p=PEP