PepsiCo Shares Loose 1% After Q1 Results

PepsiCo (PEP.US) reported first-quarter results that missed analysts’ average estimates. The company now expects earnings per share in constant currency to be roughly flat from a year earlier, with growth in the mid-single digits. However, the company lowered its guidance from earlier expectations as unpredictable U.S. trade policy and declining consumer sentiment raise costs and reduce demand for snacks and soft drinks.

The company still expects total shareholder returns of about $8.6 billion this year.

Q1 Highlights:

• Basic earnings per share $1.48 vs. $1.61 a year ago, estimated $1.49
• Earnings per share $1.33 vs. $1.48 a year ago, estimated $1.48
• Operating profit $2.58 billion, -4.9% y/y, estimated $2.78 billion
• Capital expenditures $603 million, estimated $657 million
• Net revenue $17.92 billion, -1.8% y/y, estimated $17.77 billion
• North America Food revenue $6.21 billion
• Latin America Food revenue $1.66 billion
• Europe, Middle East and Africa revenue $2.39 billion
• International Beverages franchise revenue $759 million
• PepsiCo Beverages North America revenue $5.88 billion vs. USD 5.87 billion y/y, estimated USD 5.83 billion
• Organic Revenue +1.2% vs. +2.7% y/y, estimated +0.53%

Table with selected financial metrics of the company. Source: XTB

Table with selected financial metrics of the company. Source: XTB

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