With the earnings season drawing to a close, 92.5% companies in the S&P 500 space have reported their Q3 results as of Nov 11. According to our latest Earnings Preview, 72.7% have surpassed earnings estimates while 55.4% beat revenue expectations. Total earnings have increased 3.9% on 2.7% higher revenues so far.
Coming to the Consumer Staples sector, we note that 94.2% of the companies in the S&P 500 index have already reported their results. Among these, 74.1% have surpassed earnings estimates while 37% beat revenue expectations. Total earnings for these companies increased 6% on 1.6% higher revenues.
Efficient pricing, solid cost-saving initiatives, lucrative acquisitions and efforts to enhance product portfolio cushion these companies from macroeconomic hurdles, driving their bottom lines.
The beverage (soft drink) industry, part of the consumer staples sector, has so far reported decent earnings this season. Higher sales of the non-carbonated drinks, pricing gains, lower cost of key raw materials, cost reductions along with productivity gains and overall better execution have aided these soft drink companies to deliver impressive results in the past few quarters. We saw leading names like PepsiCo Inc. (PEP - Free Report) , Dr. Pepper Snapple Inc. (DPS - Free Report) and Coca Cola Company (KO - Free Report) deliver stellar third-quarter results despite currency headwinds and sluggishness in emerging markets.
Let’s take a look at what’s in store for two soft drink stocks which are scheduled to release their third-quarter 2016 numbers on Nov 18.
Barfresh Food Group Inc (BRFH - Free Report) manufactures, and distributes ready-to-blend frozen beverages in the U.S.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
Barfresh Food has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Last quarter, the company posted in-line earnings. Meanwhile, the Zacks Consensus Estimate is pegged at a loss of 2 cents.
Based in Hicksville, NY, Long Island Iced Tea Corp. (LTEA - Free Report) produces non-alcoholic iced tea beverages.
Our proven model does not conclusively show a beat for Long Island as it has an Earnings ESP of 0.00% (Most Accurate estimate and Zacks Consensus Estimate at a loss of 24 cents) and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the third quarter, the Zacks Consensus Estimate for the bottom line is pegged at a loss of 24 cents, wider than the year-ago loss of 21 cents, while the consensus for revenues is at $1.30 million.
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