Key Takeaways
- PepsiCo’s earnings for the fourth quarter missed estimates on Tuesday, with revenue falling short for the third consecutive quarter.
- Sales declined and profits rose slightly, but each metric came in worse than expected.
- Sales fell in PepsiCo’s North American segments while they grew internationally.
PepsiCo’s fourth-quarter earnings fell short of estimates on Tuesday as sales missed expectations for the third straight quarter.
The snack food and beverage giant reported a declining $27.78 billion in revenue, down from $27.85 billion in the same time a year ago and the $27.91 billion growth that analysts had expected. PepsiCo’s (PEP) net income came in at $1.52 billion, or $1.11 per share, up slightly from $1.3 billion a year ago but well below the $2.61 billion, or $1.90 per share, consensus estimate from Visible Alpha.
After adjusting for a number of one-time costs like impairments and restructuring charges, PepsiCo recorded an adjusted net income of $2.69 billion and $1.96 per share, two cents better than expected.
Sales Declines in North America Offset By International Growth
Sales declined across the North American segments of the company’s snack food companies, Frito-Lay and Quaker Foods, while the volume of its beverage sales declined 3% year-over-year. Those declines were offset by growth in the company’s international divisions.
Looking ahead to 2025, PepsiCo said it expects a low-single digit increase in organic revenue, along with a mid-single digit increase in adjusted EPS. The company also announced a 5% bump to its full-year dividend to $5.69 per share, up from $5.42 per share previously.
PepsiCo shares were down more than 2% Tuesday morning after entering the day down just over 12% in the last 12 months.