PepsiCo Inc (NASDAQ: PEP) reported market-beating results for its fiscal fourth quarter on Thursday. The stock is still down about 1.0% as shareholders focused more on a half a billion dollars decline in net income.
What the earnings report tells us
PepsiCo said its net income printed at $1.32 billion that translates to 95 cents per share. In comparison, it had posted a much higher $1.85 billion in net income or $1.33 per share. Adjusted for one-time items, its core EPS came in at $1.53.
At $25.25 billion, the beverage giant noted a 12.4% annualised growth in revenue, as per the earnings press release. According to FactSet, experts had forecast $1.52 of adjusted EPS on $24.24 billion in revenue.
In North America, revenue was up 13% at Frito-Lay, 9.0% at Quaker Foods, and 13% at PepsiCo Beverages. On CNBC’s “Squawk Box”, CFO Hugh Johnston said:
With over 9.0% revenue growth for the year and 12% EPS growth, we feel really good about the momentum we have in our business. With Omicron, there was a bit more return to home in the latter part of Q4. But a great strength of PepsiCo is that wherever you are, we have products for you.
Guidance for fiscal 2022
For the full financial 2022, PepsiCo forecasts an increase of 8.0% in its core EPS versus analysts at 7.5%. Its estimate for 6.0% YoY growth in organic revenue was also ahead of the FactSet consensus of 5.4%.
The American multinational lifted its annual dividend from $4.30 per share to $4.60 per share and launched a new $10 billion share buyback programme on Thursday. The finance chief added:
There’s lots
