-- PepsiCo's (PEP) fiscal first-quarter results are expected to be largely in line with Wall Street's estimates, with investors seen tracking progress on the North American food business' turnaround, BofA Securities said in a Tuesday note.
The beverage and snacks giant is scheduled to release its quarterly results on April 16.
BofA continues to expect PepsiCo's earnings per share at $1.53 for the quarter. Analysts in a FactSet poll are looking for EPS of $1.53 on a GAAP basis and $1.55 on an adjusted basis.
Investors will focus on the progress on an affordability-led turnaround at PepsiCo Foods North America, BofA analyst Peter Galbo said. PepsiCo, which makes brands like Doritos, Lays and Cheetos, reduced the price of its snacks by up to 15% in February following customer feedback on the impact of rising costs.
The company's North American food business likely benefitted from winter storm-related demand and early price cuts, the brokerage said.
Also in focus will be the potential impact from the Middle East conflict and updates on growth initiatives at PepsiCo Beverages North America, or PBNA.
"At PBNA, retail sales and volumes remain largely unchanged on a sequential basis, with no clear signs of acceleration," Galbo wrote.
Year-to-date, the brokerage is seeing mixed trends at the brand level, with core Pepsi underperforming the broader cola category and Mountain Dew showing signs of sequential improvement, Galbo said.
BofA reiterated its neutral rating on PepsiCo's stock and a price target of $173.
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