Categories Consumer, Earnings

PepsiCo’s (PEP) Q4 results beat expectations

PepsiCo Inc. (NASDAQ: PEP) topped analysts’ expectations for revenue and earnings in the fourth quarter of 2019. Shares were up slightly in premarket hours on Thursday.  

Total revenue of $20.6 billion was up 5.7% from the same period last year and ahead of consensus estimates of $20.2 billion. On an organic basis, revenues grew 4.3%.  

PepsiCo topped Q4 2019 revenue and earnings expectations

On a GAAP basis, net income was $1.76 billion, or $1.26 per share, compared to $6.8 billion, or $4.83 per share, in the prior year period. Last quarter’s results included a one-time benefit from income taxes of $4.9 billion. Core EPS was $1.45, slightly above forecasts of $1.44.

During the quarter, the company saw revenue increases across all its segments and geographies both on a reported and organic basis, with the exception of the Quaker Foods North America division where revenues remained flat.  

Also read: PepsiCo Q4 2019 Earnings Preview

For fiscal year 2020, organic revenue growth is expected to be 4%. Core constant currency EPS is expected to increase by 7%. Core EPS is estimated to increase by 6% to $5.88.

PepsiCo declared a 7% increase in its annualized dividend to $4.09 per share, effective with the dividend expected to be paid in June 2020.  

The Frito-Lay business has been growing value share in the salty, savory and micro snack categories. The investments being made in marketing and product innovation are paying off with strong revenue growth in large brands such as Doritos, Cheetos and Fritos. The beverages division has benefited from strong growth in Gatorade and Bubly.  

Also Read:  Abbott Laboratories swings to profit in Q4, beats estimates

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

A look at factors that make Snap-on (SNA) a compelling investment option

Snap-on Incorporated (NYSE: SNA), the century-old company that makes high-end tools for the automotive industry, is unlikely to have a smooth ride in the current quarter, given the deepening turmoil

BlackBerry (BB) Q4 2020 earnings call highlights; blames COVID-19 for not providing fiscal 2021 outlook

Immediately after BlackBerry's (NYSE: BB) fourth-quarter 2020 results came out last evening, its stock traded in the green for quite some time in the after-hours. However, when the company announced

Why HP (HPQ) is better off without Xerox (XRX)

Xerox Corp. (NYSE: XRX) has dropped its takeover bid for HP Inc. (NYSE: HPQ) citing difficulties created by the coronavirus outbreak. This could be a relief for HP since the

2 thoughts on “PepsiCo’s (PEP) Q4 results beat expectations

Comments are closed.

Top