Earnings Preview: Pepsi Bottling Group

Pepsi Bottling Group reports Tuesday, July 8 Before Market Open. Pepsi Bottling Group (PBG) is expected to report Q2 earnings with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for a profit of 75c on revenue of $3.55B. The consensus is 73c to 79c for EPS, and revenue of $3.50B to 3.59B, according to First Call. Positive catalysts for this quarter's earnings include strong bottled water growth, new beverage products, and cost savings initiatives. The largest risk to earnings this earnings period will most likely be high energy and raw material prices.

Analyst Views

On May 20, Gabelli recommended purchasing shares after meeting with the company's VP of investor relations. Gabelli believes the U.S. pricing environment remains rational and that Russia should continue to drive European results. More recently on June 20, JP Morgan upgraded the shares based on valuation. The firm went to Neutral from Underweight.