Close

PepsiCo (PEP) delivers earnings beat but profit forecast misses estimates

February 9, 2023 6:26 AM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Shares of PepsiCo (NASDAQ: PEP) are up about 1.5% in pre-market Thursday after the food and beverage giant reported better-than-expected fourth-quarter results.

PEP posted an EPS of $1.67 on revenue of $28 billion, beating the analyst consensus for earnings of $1.65 per share on revenue of $26.82B. Overall, net revenue soared by 11%, driven by the 25% revenue growth in the Frito-Lay North America business unit. Organic revenue jumped by 14.6%.

Elsewhere, Latin America revenue soared by 21% to easily beat the average analyst estimate and helped to offset falling revenue from Europe (-2%).

The company said it identified $1B in productivity savings in 2022 and is working to mitigate inflation by further boosting productivity. PEP expects $1B of share buybacks in 2023 while the company also announced a 10% dividend hike, which represents the 51st consecutive annual increase.

On a negative note, the company’s full-year EPS guidance of $7.20 came in below the consensus of $7.28. PepsiCo also said it expects to deliver a 6% organic revenue growth and an 8% EPS growth in constant currency.

The company's average prices jumped 16% for 4Q22.

By Senad Karaahmetovic



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings, Guidance, Hot Guidance, Hot List

Related Entities

Earnings, Senad Karaahmetovic