Shares of Pepsi Bottling Group
What analysts say:
- Buy, sell, or waffle? Fifteen analysts currently follow Pepsi Bottling. Four are bullish, one isn't, and the rest can't make up their minds and rate it hold.
- Revenues. Analysts are projecting second-quarter sales of $3.3 billion, or 4.8% ahead of last year's number.
- Earnings. Analysts project quarterly earnings of $0.63, for a year-over-year improvement of 3.3%.
What management says:
Back when the company released first-quarter results, it said it expected 1%-2% global case volume growth for 2007, made up of "flat to up one percent" growth in the United States and Canada. Management expects this to trickle down to $1.90-$1.98 in full-year diluted earnings and is also calling for operating cash flow of $530 million-$550 million, or $2.27-$2.36 per share.
What management does:
Management runs a tight ship and has been able to grow sales and earnings in the high single digits on average over the past five years. It also keeps a tight lid on costs, and though net margins are razor thin, has pushed them up more than 4% again recently.
|
11/05 |
02/06 |
05/06 |
08/06 |
11/06 |
02/07 |
|
|---|---|---|---|---|---|---|
|
Gross |
47.4% |
47.1% |
46.9% |
46.7% |
46.5% |
46.4% |
|
Operating |
8.2% |
8.2% |
8.2% |
8.2% |
8.5% |
8.4% |
|
Net |
3.9% |
3.8% |
3.7% |
3.7% |
4.1% |
4% |
One Fool says:
There's little doubt that Pepsi Bottling is a well-run firm, but bottling is a low-margin affair and very capital intensive due to the plants, equipment, and distribution facilities needed to bottle and transport beverages for PepsiCo
Coca Cola
For more related Foolishness:
Coca-Cola is a member of the Motley Fool Inside Value portfolio.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
