Categories AlphaGraphs, Earnings, Retail

PepsiCo’s stock gains as Q4 results match expectations

PepsiCo Inc. (PEP) reported fourth-quarter 2018 revenue and earnings that came in line with market expectations, giving the stock a lift of 0.5% in premarket hours on Friday.

Total sales of $19.5 billion remained flat compared to the same period last year. Reported sales results suffered a negative impact of 4% from foreign exchange translation and 1% from acquisitions and divestitures. Excluding these impacts, organic revenue grew 4.6%.

PepsiCo fourth quarter 2018 earnings infographic
PepsiCo Q4 2018 Earnings Infographic

For its fourth quarter, the company reported a net income of $6.8 billion, or $4.83 per share, versus a net loss of $710 million, or $0.50 per share, in the prior-year quarter, helped by income tax benefits. Core EPS was $1.49.

During the quarter, the company reported revenue growth in its Frito-Lay North America and North America Beverages segments. All the remaining segments posted revenue declines with the highest at 8% in Asia, Middle East and North Africa.

For the full year of 2019, PepsiCo expects organic revenue to grow 4% and core constant currency EPS to decline approx. 1%. Core EPS is expected to decrease by 3% to $5.50 versus 2018. The EPS results in 2019 are expected to be impacted by incremental investments to strengthen the business.

Over the long term, the company expects to achieve organic revenue growth of 4-6% and core constant currency EPS growth in the high single digits. PepsiCo also expects to generate productivity savings of at least $1 billion annually through 2023.

PepsiCo declared a 3% increase in its annualized dividend per share to $3.82 from $3.71, effective with the dividend expected to be paid in June 2019.

On Thursday, PepsiCo’s rival Coca-Cola (KO) reported its fourth quarter 2018 results before the opening bell. While the key numbers matched estimates, the stock dropped as the outlook fell short of expectations.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

IPO Alert: Here’s what to look for when CaliberCos goes public

The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is

CarMax (KMX) Stock: Does the current dip offer a buying opportunity?

The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with

Ultimax Digital gears up for $10mln IPO. Here’s all you need to know

The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top