PepsiCo shares hit record high after earnings beat

Earnings

PepsiCo on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations.

Shares of the company rose less than 1 percent in premarket trading following the announcement.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 97 cents, adjusted, vs. 92 cents expected
  • Revenue: $12.88 billion vs. $12.70 billion expected

The Frito-Lay owner reported fiscal first-quarter net income of $1.41 billion, or $1.00 per share, up from $1.34 billion, or 94 cents per share, a year earlier.

Excluding items, PepsiCo earned 97 cents per share, topping the 92 cents per share expected by analysts surveyed by Refinitiv.

Net sales rose 2.6 percent to $12.88 billion, beating expectations of $12.70 billion.

The company disappointed investors last quarter when it forecast declining 2019 earnings as it spends more on marketing and advertising to boost sales. To balance those investments, PepsiCo is planning to slash at least $1 billion in costs every year through 2023, which will include layoffs in jobs that can be replaced by automation.

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