For the full year, Pepsi posted EPS of $4.37 on revenues of $66.15 billion, compared with EPS of $4.10 on revenues of $65.49 billion in 2012. The consensus estimates called for EPS of $4.34 on revenues of $66.47 billion.
Pepsi raised its annual dividend from $2.27 a share to $2.62, effective in June, and said it plans to repurchase approximately $5 billion in stock during 2014. The company said the combined effect of these programs will return about $8.7 billion to stockholders in 2014.
In its outlook, Pepsi expects to grow adjusted EPS by 7% in 2014, which translates to EPS of $4.68, a penny below the current consensus estimate. The company also expects organic revenue growth in the mid-single digits and productivity savings of $1 billion. Pepsi expects commodity price inflation in the low single-digit range for 2014.
The company’s CEO said:
We met or exceeded our organic revenue, cash flow, productivity, and core operating margin, constant currency EPS, and net ROIC targets and, at the same time, continued to invest in our brands, innovation and execution to strengthen the long-term health of our business. We look ahead to 2014 with confidence that our business is positioned to continue to perform well and to generate attractive returns for our shareholders.
In its three North American divisions, organic revenue rose 7% on a constant currency basis in the Frito Lay group, dropped 15% in the Quaker Foods group and rose 12% in the Americas Beverages group. Revenues in Europe fell 8% and rose 48% in the Asia, Middle East and Africa region. Overall revenues rose 1% year-over-year.
PepsiCo shares were down about 0.6% in premarket trading, at $81.00 in a 52-week range of $71.50 to $87.06. Thomson Reuters had a consensus analyst price target of around $91.00 before this report.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.