Soft drinks-to-snacks powerhouse PepsiCo (PEP:NASDAQ) has a track record of beating earnings forecasts then raising guidance. This means investors will be counting on another round of upwards earnings revisions when the company serves up second quarter results on 13 July.

However, there are no guarantees it will report good news, given PepsiCo is lapping demanding comparatives and contending with persistent cost and currency headwinds.

Analysts forecast $21.71 billion revenue (Q2 2022: $20.23 billion) and $1.95 earnings per share (Q2 2022: $1.86).

PepsiCo’s food and drink brands span everything from the eponymous fizzy pop to Mountain Dew, Doritos and Walkers crisps as well as Quaker Oats and Frito-Lay. Affordable repeat purchases enjoyed by consumers more than one billion times a day in over 200 countries and territories around the globe, these products underpin the company’s prized brand strength, pricing power, cash generation and long-run dividend growth record.

On 25 April, PepsiCo raised full year 2023 organic sales growth guidance from 6% to 8% and its earnings per share forecast from 8% to 9% following a strong start to the year, with organic sales up 14.3% in the first quarter.

Chief executive Ramon Laguarta said the results demonstrated the investments PepsiCo has made to become ‘an even faster, even stronger, and even better organisation’. He added: ‘We remain committed to our strategic agenda and will continue to invest in our people, brands, supply chain, go-to-market systems, and digitisation initiatives to build competitive advantages and win in the marketplace.’

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