PepsiCo Poised for ‘Depressed’ Quarterly Results, Organic Sales Acceleration in Rest of 2024, Morgan Stanley Says
PepsiCo (PEP) is likely to post “depressed” first-quarter results and reiterate its full-year outlook amid subdued expectations, though organic sales growth is projected to accelerate for the rest of the year, Morgan Stanley said in a note e-mailed Monday. The beverage and snacks company is scheduled to report March-quarter results on April 23. Morgan Stanley projects earnings at $1.51 per share and organic sales growth at 2.3%. Wall Street is looking for $1.52 and 2.5%, respectively, the brokerage said in a note. Morgan Stanley said the company could see “modest” upside to the firm’s and the Street’s organic sales outlooks, with the metric likely to see acceleration for the rest of the year as annual headwinds dissipate and comparisons ease. The brokerage expects the sequential pricing drop-off to ease in the second half of the year, while Quaker volumes are seen improving somewhat sequentially in the second quarter. “We think…