Pepsico Earnings: Here’s Why Shares are Up Now

Pepsico, Inc. (NYSE:PEP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.79%.

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Pepsico, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.59% to $0.77 in the quarter versus EPS of $0.69 in the year-earlier quarter.

Revenue: Rose 1.23% to $12.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pepsico, Inc. reported adjusted EPS income of $0.77 per share. By that measure, the company beat the mean analyst estimate of $0.71. It missed the average revenue estimate of $12.61 billion.

Quoting Management: “We’re greatly encouraged by the strong start to 2013. We delivered solid organic revenue growth and double-digit core EPS growth in the first quarter, driven by our balanced food and beverage product and global geographic portfolio. Our investments in creating this portfolio are paying off and our brand and innovation strategies are driving sustainable top-line growth,” said Chairman and CEO Indra Nooyi.

Key Stats (on next page)…

Revenue decreased 36.95% from $19.95 billion in the previous quarter. EPS decreased 29.36% from $1.09 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 $1.22 to a profit $1.2. For the current year, the average estimate has moved down from a profit of $4.4 to a profit of $4.39 over the last ninety days.

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