PepsiCo and Blue Owl earnings: What to Watch for Friday

Asset management firm Blue Owl Capital (OWL) and snack giant PepsiCo (PEP) are on track to report earnings results on Friday, February 9. Yahoo Finance Live co-hosts Julie Hyman and Josh Lipton discuss the earnings reports they are looking forward to the most tomorrow.

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Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JULIE HYMAN: And also some additional things. You mentioned the Blue Owl will be out tomorrow.

JOSH LIPTON: Yes.

JULIE HYMAN: Blue Owl Capital, not necessarily a household name, but it is one of these companies that has been talked about as providing private credit. A lot has been made of the growing area of private credit that is non-bank entities that are making loans. And some have raised flags about the growth of this area that could be a risk going forward.

Blue Owl kind of serves the mid-market. And it seems like just looking at some of the anticipation for the numbers, there is not as much concern around it. But it's the reason I'll be watching it closely. It's sort of a read on that private credit sector.

JOSH LIPTON: All right, you're watching private credit. I'm going to be looking at snacks.

JULIE HYMAN: OK.

JOSH LIPTON: Maybe some soft drinks. Pepsi Q4 earnings before the bell tomorrow, stock is up about 2% this year. It doesn't sound like much. Still though it's a bit better than rival Coca-Cola. Looking for core EPS of $172 on revenue of $28.34 billion.

Team at Bernstein, Julie, saying recent US data signals business might have delivered negative growth in Q4, says Europe also looking kind of weak and the bar has been kind of set high. So we'll see what they tell us tomorrow.

JULIE HYMAN: Yeah, the price to volume calculation has been really important for Pepsi and for other food companies over the past year. So we'll see if they're starting to see more--

JOSH LIPTON: How much are people snacking?

JULIE HYMAN: --of a recovery in volume.

JOSH LIPTON: What's the snacking like?

JULIE HYMAN: I don't know.

JOSH LIPTON: We'll find out.

JULIE HYMAN: We're going to find out. It's been pretty strong, the snacking.

JOSH LIPTON: In the Lipton household, very strong, very bullish.

JULIE HYMAN: I'm sure. Yeah.

JOSH LIPTON: Yeah.

JULIE HYMAN: That doesn't surprise me.