PepsiCo Tops Estimates, Guides 2013 In-Line

For the quarter, the food and beverage company posted adjusted diluted earnings per share (EPS) of $1.09 on revenues of $19.95 billion. In the same period a year ago, the company reported EPS of $1.15 on revenues of $20.16 billion. This morning’s results also compare to the Thomson Reuters consensus estimates for EPS of $1.05 and $19.7 billion in revenues.

On a GAAP basis, EPS for the quarter totaled $1.06, which excludes a tax benefit of $0.14 a share and an equal amount of pension and other charges.

For the full year, PepsiCo reported EPS of $4.10, slightly ahead of estimates for EPS of $4.07. Full-year revenues totaled $65.49 billion, again slightly ahead of the consensus estimate of $65.31 billion.

The company guided 2013 EPS to 7% above the $4.10 the firm earned this year. That calculates to about $4.39 a share, which is just under the consensus estimate of $4.40. PepsiCo expects low single-digit inflation in commodity prices.

The company’s CEO said:

We also took a number of significant steps in 2012 that will even better position our business for sustainable, long-term growth; we increased our brand investment, stepped up our innovation, improved our marketplace execution and embarked on an aggressive productivity program that will contribute to our profitability and act as a funding source of future investment.

PepsiCo raised its current annual dividend of $2.15 to $2.27 and expects to return $6.4 billion to shareholders during 2013 in the form of dividends and share buybacks. The company also announced a new three-year $10 billion share repurchase plan that will become effective in July.

PepsiCo’s shares are up nearly 2% in premarket trading, having closed last night at $71.50 in a 52-week range is $62.15 to $73.66. Thomson Reuters had a consensus analyst price target of around $76.40 before today’s report.