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PepsiCo will beat EPS estimate despite soft sales, Jefferies says

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Indra Nooyi, CEO of PepsiCo.
Adam Jeffery | CNBC

Jefferies is predicting that PepsiCo will beat its estimate for second quarter earnings per share despite indications of soft core sales and continued troubles in emerging markets.

"Emerging market malaise persists and US Nielsen data was notably soft, which we expect to drive tepid ~2% org sales growth in 2Q," Jefferies analyst Kevin Grundy wrote in Thursday's report. "However, given moderating FX/commodity headwinds and ample productivity flex, we still see ~3-4 points of upside to PEP's FY17 EPS guide."

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