PepsiCo, Inc Earnings

Published on: 15 Feb, 2019

On Friday PepsiCo, Inc. (NASDAQ: PEP)announced fourth-quarter earnings that were in-line with analysts estimates, while also expecting weaker earnings for 2019.

For the three months ending in December, Pepsi earned USD 1.49 per share a 13.7% increase from the same period last year. Earnings for fourth quarter 2018 matched analyst estimates. The Company reported net sales of USD 19.52 Billion, again falling in-line with estimates, but unchanged from a year prior.

Strong performance from Pepsi’s Frito-lay North America and International sectors helped to meet and exceed the Company's financial objectives in 2018.

For 2019 Pepsi is expecting about a 1% decline in EPS, the company is predicting it will earn USD 5.50 per share. This is down from 2018 earnings of USD 5.66 per share and falling short of Wall Street expectations of USD 5.86 per share. 2019 EPS performance is said to be impacted by “incremental investments that are intended to furth strengthen the business.” However, the food and beverage giant is expecting EPS to return to "high-single-digit core constant currency EPS growth" in 2020.

Pepsi is planning to invest more in advertising and marketing in 2019. The Company will also be adding more nutritious options to there product selection including Off the Eaten Path and Sunchips.

The Company also disclosed that its dividend will be increasing by 3% from USD 3.82 to USD 3.71 beginning in June.

“We are pleased with our results for the fourth quarter and the full year 2018. For the year we met or exceeded each of the financial objectives we set out at the beginning of the year. Frito-Lay North America and each of our international sectors performed very well, and our North America Beverages sector made progress throughout the year,” said Chairman and CEO Ramon Laguarta.

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Terrence Koo

Email: terrence@financialinsiders.com

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