PepsiCo on Friday reported quarterly earnings and revenue that met analysts’ expectations, nonetheless is forecasting weaker-than-expected earnings for 2019, like rival Coca-Cola.
The meals and beverage large is forecasting that it should earn $5.50 per share all through 2019, down from its 2018 earnings per share of $5.66. Wall Street had anticipated the company to earn $5.86 in 2019, in response to Refinitiv estimates.
Among totally different parts, PepsiCo known as out an elevated tax value and overseas cash headwinds as causes for the weak outlook. Excluding overseas cash fluctuations, it expects full-year earnings per share to say no by 1 p.c. The agency’s earnings remaining 12 months had been moreover boosted by selling property and lapping franchising costs.
The agency moreover talked about in an announcement that it plans to make 2019 “a year of substantial investment,” along with rising merger and acquisition train. In December, it completed its $3.2 billion acquisition of SodaStream, the at-home glowing drink maker.
Shares of the company dropped decrease than 1 p.c in premarket shopping for and promoting.
Here’s what the company reported in distinction with what Wall Street was anticipating, based mostly totally on a survey of analysts by Refinitiv:
- Earnings per share: $1.49 vs. $1.49 anticipated
- Revenue: $19.52 billion vs. $19.52 billion anticipated
The agency reported net product sales of $19.52 billion, matching analysts’ expectations and unchanged from a 12 months earlier.
PepsiCo’s once-struggling North American beverage enterprise continued its comeback this quarter, seeing 2 p.c pure progress. The agency has been rising its spending on promoting and selling, considerably on its Pepsi and Mountain Dew sodas. It has moreover been investing in its higher-growth water and sports activities actions drinks segments, with producers like Gatorade Zero and Lifewtr.
Its snack enterprise remained sturdy, with Frito-Lay North America delivering 4 p.c pure revenue progress. The agency talked about that it is persevering with in order so as to add further nutritious snacking selections.
PepsiCo reported fiscal fourth-quarter net income of $6.85 billion, or $4.83 per share, up from an absence of $710 million, or 50 cents per share, a 12 months earlier.
Excluding merger and integration bills, net tax benefits and totally different objects, PepsiCo earned $1.49 per share, in keeping with Wall Street’s expectations.
The agency moreover launched Friday that it is rising its dividend by 3 p.c, to $3.82 from $3.71, beginning in June.