PepsiCo’s Earnings Beat Forecasts. The Stock Is Inching Higher.

Text size

PepsiCo said in its previous quarterly report that it planned to raise its dividend 5% in June.

Joe Raedle/Getty Images


stock is edging higher following news that the food and beverage giant reported better-than-expected results for the fiscal first quarter, but told investors not to expect any more share buybacks this year.

. The company also maintained its full-year financial forecasts.

PepsiCo (ticker: PEP) said it earned $1.71 billion, or $1.24 a share, compared with 96 cents a share in the year-ago period. On and adjusted basis, which excludes nonrecurring items including acquisitions and divestitures, earnings per share were $1.21 a share. Revenue climbed 6.8% to $14.82 billion. Analysts were looking for Pepsi to report EPS of $1.12 on revenue of $14.55 billion.

Organic revenue climbed 2.5%. Sales for its North American Frito-Lay, Quaker Foods, and beverage segments rose 4%, 2%, and 5%, respectively. Revenue jumped 70% in the Asia Pacific region, and 40% in Africa, the Middle East and South Asia, but fell 5% in Latin America and 2% in Europe.

For the full year, Pepsi maintained its financial forecasts, saying it is looking for core EPS to rise in the high single digits on a constant-currency basis, on a mid-single-digit increase in organic revenue.

After completing $105 million in share buybacks, the company doesn’t anticipate repurchasing additional stock this year. The company announced in its previous quarterly report that it planned to raise its dividend 5% in June.

Pepsi was up 0.3% to $142.54 in early trading. The shares are off 4.2% year to date, but have gained 4.8% in the past 12 months.

Pepsi has been a beneficiary of the Covid-19 pandemic, as more consumers pass the time snacking at home. It has recorded several better-than-expected quarters in a row.

Write to [email protected]

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News