Home

    You are here

PEPSICO ABOVE EXPECTATIONS BUT STILL WITH LOSSES

You are here

PepsiCo on stock.com

PEPSICO ABOVE EXPECTATIONS BUT STILL WITH LOSSES

Feb 11 2015, 3.38pm GMT

STOCK.com

PepsiCo shares opened 2% up on Wednesday’s trading though losses in revenue and profit showed in Q4 results.

Earnings per share painted a more positive picture with core earnings per share of $1.12 for the fourth quarter of 2014 and $4.63 for the full year, on organic revenue growth of 5% for the quarter and 4% for the full year. Net revenue fell 1% to $19.95 billion, with the decline mostly based on the negative effects of foreign exchange rates; a common problem cited by most U.S companies as the USD stays strong.

Expectations for PepsiCo fourth-quarter earnings were $1.08 a share compared with $1.05 a share a year earlier, whilst revenue of $19.66 billion was forecast, compared with $20.12 billion a year earlier.

PepsiCo highlights for results ended December 2014:

  • Organic revenue grew 5% and reported net revenue declined 1%.
  • Foreign exchange translation had a 6-percentage-point unfavorable impact on reported net revenue.
  • Developing and emerging market organic revenue grew 10%.

PepsiCo highlights for full year 2014:

  • Organic revenue grew 4% and reported net revenue was even.
  • Foreign exchange translation had over a 3-percentage-point unfavorable impact on reported net revenue.
  • Delivered $1 billion of productivity savings in 2014.
  • The company returned a total of $8.7 billion to shareholders in 2014 through $3.7 billion in dividends and $5.0 billion in share repurchases.

The markets saw a similar story on Tuesday with rival drinks company Coca-Cola releasing better than forecast North American sales 2% higher at $5.37 billion in the fourth quarter, and regional growth.

The table shows the comparison in rival drinks’ companies in their global regional organic revenue.

Region

PepsiCo

Coca-Cola

Eurasia and Africa Group

 

+5%

Europe

+6%

+2%

Latin America

+11%

+14%

Asia Pacific

 

-1%

North America

+3%

+5%

Asia, Middle East & Africa

+7%

 

PepsiCo gave expectations to investors for the fiscal year 2015 to cover:

  • Low-single-digit commodity inflation, which includes the estimated impact of transaction related foreign exchange;
  • Productivity savings of approximately $1 billion;
  • Higher interest expense driven by increased debt balances; and
  • A core effective tax rate of approximately 25%.

MT4chart: PepsiCo

PepsiCo on STOCK.com

Trade stock CFDs on STOCK.com with full training given to all clients

Stocks Block Actions

Trading Platforms

MetaTrader

Through a simple native App download, be ready to log on to the powerful, intuitive MT4 platform and trade multiple assets on your desktop or through mobile

More on MetaTrader

WebTrader

Online access - anytime, anywhere - to your secure STOCK.com account, through desktop, tablet and mobile interfaces with no download necessary

More on WebTrader

Trading in CFDs involves significant risk to your invested capital