PepsiCo Inc (NASDAQ:PEP) could highlight recent food and pricing changes when the beverage and food giant reports first-quarter (Q1) financial results on Thursday before market open.

Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.

PepsiCo Q1 Analyst Estimates

Analysts expect PepsiCo to report Q1 revenue of $18.93 billion, up from $17.92 billion in last year's Q1, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in four straight quarters and in six of the last 10 quarters overall.

Analysts expect the company to report Q1 earnings of $1.55 per share, up from $1.48 year-over-year.

The company has beaten analyst estimates for earnings per share in three straight quarters and in nine of the last 10 quarters overall.

PepsiCo Expert and Analyst Commentary

Escalating tension in the Middle East has Bank of America Securities analyst Peter Galbo cautious on PepsiCo stock ahead of earnings.

The analyst recently maintained a Neutral rating with a price target of $173.

With operations in the United Arab Emirates and other Middle East regions, the increased global tensions could have an impact on the company for the quarter, the analyst warned.

Outside of the Middle East, Galbo highlighted a potential rebound for the company's North American food segments based on Q1 data.

Freedom Capital Markets Chief Market Strategist Jay Woods said Pepsi stock hopes to keep a win streak alive, with shares up an average of 5.5% after the last three earnings reports.

"Investors will watch whether volumes are stabilizing after a stretch driven by price hikes and if management's guidance reflects ongoing inflation concerns that could pressure consumer demand," Woods said in a weekly newsletter. "A cautious outlook tied to sticky food prices or cost volatility could overshadow otherwise steady results."

Key Items to Watch

Pepsi's financial results come as the company is pushing through several changes for its food businesses that could be a focus for management on Thursday.

PepsiCo CEO Ramon Laguarta put an emphasis on Pepsi's Quaker segment during a presentation at the Consumer Analyst Group of New York conference earlier this quarter. During the presentation, Laguarta highlighted fiber content and hydration as trends for the brand, as reported by Foodbusinessnews.

The focus on the brand comes as Health and Human Services Secretary Robert F. Kennedy Jr. has called out big food companies like Pepsi for the food dyes and questionable ingredients in food products. Oatmeal has even become a hot topic in the food world with Kennedy saying he prefers organic oats. The Trump Cabinet member also highlighted a preference for oatmeal with fruit over cereal.

Pepsi is focusing harder on the oatmeal and breakfast foods in a move that could satisfy requests from Kennedy and also mark a pivot by the company to capture additional market share.

Laguarta also highlighted more alternative cooking methods for like olive oil and avocado oil for other PepsiCo products like chips.

"We will have cooking methods like baked or kettle, we'll have olive oil, we'll have avocado oil; we'll have multiple partitions of the brand I'm sure consumers will love as we go forward," Laguarta said of the company's Lay's chip band.

PepsiCo Prices

The food product changes and focused areas come after PepsiCo also announced it would lower the prices on some snack brands by more than 15%, including Lay's and Flamin' Hot Cheetos.

These changes could set PepsiCo up for future growth, but the questions become how long the changes could take and if it will impact margins along the way.

PepsiCo could offset the lower prices and higher priced food costs to make products with higher overall sales volume in the future. The company could also increase its market share and hope to offset the margins with overall revenue gains.

The quarterly results from PepsiCo come slightly ahead of beverage peer and rival Coca-Cola (NYSE:KO), who is set to report Q1 results on April 28. Coca-Cola has beaten analyst estimates for earnings per share in nine of the last 10 quarters and beaten analyst estimates for revenue in seven of the last 10 quarters.

Price Action

Pepsi stock is down 0.4% to $155.06 on Wednesday versus a 52-week trading range of $127.60 to $171.48. Pepsi shares are up 9.0% year-to-date and up around 8.6% over the last 52 weeks.

For comparison, shares of Coca-Cola are up 9.1% year-to-date and up around 4.9% over the last 52 weeks.

Both beverage stocks have outperformed the 2.1% year-to-date gain of the S&P 500, but remain down over the last 52 weeks to the index's gain of 29.8%.

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