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PepsiCo Tops Earnings Estimates and Boosts Organic Revenue ForecastPepsiCo Tops Earnings Estimates and Boosts Organic Revenue Forecast Barron's (Online); New York Shares of PepsiCo dipped Tuesday even after the beverage and snack company reported first-quarter earnings ahead of analysts' expectations. PepsiCo (ticker: PEP) posted core earnings of $1.29 a share, beating estimates of $1.23 a share, according to FactSet. Revenue rose more than 9% to $16.2 billion, higher than forecasts for $15.5 billion. Organic revenue growth at PepsiCo, which makes Gatorade and Quaker Oats cereals, was 13.7% in the quarter. "Given the strength and resilience of our businesses to date, while reflectinghigher-than-expected input cost inflation for the balance of 2022, we now expect our full-year organic revenue to increase 8% (previously 6%) and we continue to expect core constant currency earnings per share to increase 8%," the company said in a press release. The company said it expects core earnings in 2022 of $6.63 a share, 6% increase from last year. It is also planning to return approximately $7.7 billion to shareholders, made up of $6.2 billion in dividends and $1.5 billion in stock repurchases. Throughout the year, PepsiCo forecasts a 2-percentage-point foreign exchange translation headwind to impact net revenue and core earnings per share growth. PepsiCo stock was down 0.3% in premarket trading Tuesday to $173.25. "We expect continued PEP top-line momentum, but the margin trajectory could be more volatile given input cost, labor, and transportation cost inflation, as well as reinvestment," wrote RBC Capital Markets analyst Nik Modi on Tuesday. Modi views Pepsi's current valuation as fair, which supports his Sector Perform rating. Competitor Coca-Cola (KO) r eported earnings on Monday , beating analysts' consensus. The beverage giant delivered adjusted earnings of 64 cents a share and $10.5 billion in revenue. |
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