Pepsico Earnings: Here’s Why Investors are Happy Now

Pepsico, Inc. (NYSE:PEP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.87%.

Pepsico, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 9.17% to $1.09 in the quarter versus EPS of $1.15 in the year-earlier quarter.

Revenue: Decreased 1.01% to $19.95 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pepsico, Inc. reported adjusted EPS income of $1.09 per share. By that measure, the company beat the mean analyst estimate of $1.05. It beat the average revenue estimate of $19.7 billion.

Quoting Management: “In 2012, we delivered 5 percent organic revenue growth, reflecting PepsiCo’s many strengths: we’re well positioned in attractive and highly complementary growth categories, our portfolio is diversified with products that have broad appeal and a global footprint that is balanced, and we have an enviable portfolio of iconic brands,” said Chairman and CEO Indra Nooyi.

Key Stats (on next page)…

Revenue increased 19.83% from $16.65 billion in the previous quarter. EPS decreased 9.17% from $1.20 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.73 to a profit $0.72. For the current year, the average estimate has moved up from a profit of $4.06 to a profit of $4.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)