When PepsiCo Inc. (NASDAQ: PEP | PEP Price Prediction) released its first-quarter financial results before the markets opened on Tuesday, the company said that it had $1.07 in earnings per share (EPS) and $13.88 billion in revenue. That compares with consensus estimates of $1.03 in EPS and $13.21 billion in revenue, as well as the $0.97 per share and $12.88 billion posted in the same period of last year.
During the most recent quarter, organic net revenue growth totaled 7.9% year over year. Core constant EPS declined by about 10% year over year as well.
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In terms of its segments, the firm reported as follows:
- Frito-Lay North America revenues increased 6.8% year over year to $4.07 billion.
- Quaker Foods North America revenues increased by 6.7% to $634 million.
- PepsiCo Beverages North America revenues increased 7.3% to $4.84 billion.
- Latin America revenues increased by 5.6% to $1.31 billion.
- Europe revenues increased 13.5% to $1.84 billion.
- Africa, Middle East and South Asia net revenues increased 9.0% to $631 million.
- Asia, Pacific, Australia, New Zealand and China revenues increased 5.7% to $555 million.
Looking ahead to the 2020 full year, the company expects to see total cash returns to shareholders of approximately $7.5 billion, comprised of dividends of $5.5 billion and share repurchases of $2 billion. Additionally, the company expects to see a three-to-four percentage point foreign exchange translation headwind to negatively impact reported net revenue and core EPS. Consensus estimates call for $5.64 in EPS and $67.44 billion in revenue.
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Ramon Laguarta, PepsiCo’s board chair and chief executive, commented:
Our sympathies go out to all affected by COVID-19 and we thank all those working to keep people safe through this crisis. I also want to personally thank every one of our associates for their tireless efforts to serve customers, consumers and communities with much needed food and beverages during these uncertain times. And to support our communities, PepsiCo launched an initiative to contribute more than $50 million focused on serving nutritious meals to people impacted by COVID-19 and providing vital support such as protective gear for healthcare workers, as well as testing and screening services. From community relief efforts to making, moving, and selling our products, PepsiCo employees around the world overcame immense challenges and disruptions. Our first quarter results reflect these efforts and the agility of our business which delivered high single-digit net revenue growth
PepsiCo stock traded up over 1% on Tuesday to $136.41, in a 52-week range of $101.42 to $147.20. The consensus price target is $141.24.
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