It's hard to believe, but it's that time again…
PepsiCo Inc. (NASDAQ: PEP) is already out of the gate with strong numbers on the back of snack and beverage sales, especially in higher-growth beverage categories; I mean energy drinks like Mountain Dew Game Fuel, and Bubly sparkling water.
That said, this upcoming batch of quarterly reports is widely expected to be a downer, with the average decline in earnings coming in at 2.6% according to FactSet data.
If that's where the scorecard finishes, it'll be the second straight quarter of declines year over year. By comparison, the average estimated earnings decline was just 0.5%, so this is potentially a big deal.
I say "potentially" because mainstream analysts had the same sort of doom and gloom in mind last quarter, and the numbers were stronger than most folks expected – as was the S&P 500.
Anybody betting on a decline got left on the proverbial bench, caught flatfooted by a market that ran away from them.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.