PepsiCo Inc. (NYSE: PEP) reported first-quarter 2016 results before markets opened Monday. The snack food and beverage company posted core (adjusted) diluted earnings per share (EPS) of $0.89 on revenues of $11.86 billion. In the same period a year ago, the company reported EPS of $0.83 on revenues of $12.22 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.81 and $11.88 billion in revenues.
On a GAAP basis, first-quarter EPS totaled $0.64 and net revenue fell 3% as a result of currency translation effects and currency devaluation in Venezuela.
For 2016 Pepsi continues to forecast adjusted EPS growth of 8% on a constant currency basis to $4.66. The consensus estimate had called for 2016 EPS of $4.70. Pepsi expects a negative impact of around 4% on adjusted EPS due to currency exchange transactions and 2% due to Venezuelan deconsolidation.
The company also expects organic revenue to grow by 4% this year. Free cash flow is targeted at over $7 billion on operating cash flow of more than $10 billion, and capital spending is forecast at $3 billion for the year.
Pepsi plans to pay out about $7 billion in dividends this year ($2.81 annual rate) and buy back about $3 billion in stock.
CEO Indra Nooyi said:
We delivered strong first quarter operating results driven by balanced execution of our commercial agenda and productivity programs. Our marketing initiatives and new product launches are generating solid organic top line growth, and our focus on driving greater efficiency throughout our operations contributed significantly to attractive core gross margin expansion. We are off to a strong start to the year and that gives us added confidence in achieving our financial objectives for 2016.
PepsiCo’s shares traded up about 0.2% early Monday, at $103.99 in a 52-week range of $76.48 to $105.77. Thomson Reuters had a consensus analyst price target of $109.05 before the report.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
