PepsiCo (PEP) Reports In-Line Q4 EPS, Revenues Beat; Offers FY19 EPS Guidance Below Consensus

PepsiCo (NASDAQ: PEP) reported Q4 EPS of $1.49, in-line with the analyst estimate of $1.49. Revenue for the quarter came in at $19.52 billion versus the consensus estimate of $19.51 billion.

“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. “While adverse foreign exchange translation negatively impacted reported net revenue performance, our underlying organic revenue growth accelerated in the second half, and we ended the year with 4.6% organic revenue growth in the fourth quarter. Furthermore, we are excited about the outlook for our business. We are well positioned in large, growing categories and have developed strong and relevant capabilities over the years. In 2019, we aim to capitalize on the momentum we have as we enter the year, and to continue to invest in the capabilities that will better position us for success for years to come.“For 2019, we expect 4% organic revenue growth and approximately 1% decline in core constant currency EPS. Our 2019 EPS performance is expected to be impacted by incremental investments that are intended to further strengthen the business, lapping a number of 2018 strategic asset-sale and refranchising gains and an increased core effective tax rate in 2019. Importantly, we expect to return to high-single-digit core constant currency EPS growth in 2020.”

GUIDANCE:

PepsiCo sees FY2019 EPS of $5.50, versus the consensus of $5.87.

For earnings history and earnings-related data on PepsiCo (PEP) click here.

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