PepsiCo Inc. Earnings Cheat Sheet: Revenue Grows By Double-Digits For Fifth Straight Quarter

The Cheat Sheet

S&P 500 component PepsiCo Inc. reported its results for the third quarter. PepsiCo is a global company that manufactures a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods.

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PepsiCo Earnings Cheat Sheet for the Third Quarter

Results: Net income for PepsiCo Inc. rose to $2 billion ($1.25 per share) vs. $1.92 billion ($1.19 per share) in the same quarter a year earlier. This marks a rise of 4.1% from the year earlier quarter.

Revenue: Rose 13.3% to $17.58 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PEP reported adjusted net income of $1.31 per share. By that measure, the company was just above the mean analyst estimate was $1.30 per share. Analysts were expecting revenue of $17.25 billion.

Quoting Management: “We’re focused on growing our business by providing consumers around the globe with great tasting products they love at a good value, and we believe this quarter’s performance is a good indication that our efforts are working,” said PepsiCo Chairman and CEO Indra Nooyi. “We had strong revenue growth across our product portfolio and across our key geographic markets. We were able to achieve pricing to partially offset commodity cost inflation and at the same time stimulate consumer demand for our products.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 40% from the year earlier quarter.

Gross margin shrank 2.9 percentage points to 51.9%. The contraction appeared to be driven by increased costs, which rose 20.6% from the year earlier quarter while revenue rose 13.3%.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of $1.21 per share.

The company has now seen net income rise in two straight quarters. In the second quarter, net income rose 17.6% from the year earlier.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.19 per share to $1.16. For the fiscal year, the average estimate has moved down from $4.50 a share to $4.41 over the last ninety days.

Competitors to Watch: The Coca-Cola Company , Dr Pepper Snapple Group Inc. , Coca-Cola Enterprises Inc. , Hansen Natural Corporation , Reed’s, Inc. , Cott Corporation , National Beverage Corp. , Jones Soda Co.

, Celsius Holdings, Inc. , and Fomento Economico Mexicano SAB .

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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