PepsiCo posts better than expected earnings

By: Miguel A. Rodriguez

09:45, 14 September 2020

PepsiCo revenue still falls as the pandemic hits sales.

Earlier today, PepsiCo released the financial reports for the past quarter. As expected, the pandemic affected its sales volumes.

Still, the company posted profit and revenue that fell less than expected. The net income reduced to $1.65 billion from $2.04 billion compared to last year. The EPS was $1.32, higher than the anticipated consensus of $1.25.

However, the revenue dropped by 3.1% to $19.95 billion. Although it is lower at the same time is higher than the expected $15.37 billion.

Given the global context, PepsiCo didn't provide further financial guidance. Still, it is working on returning $7.5 billion to shareholders by $5.5 billion worth of dividends, and $2 billion worth of stock repurchases. According to CEO Ramon Laguarta, the company spent roughly $400 million on costs for the pandemic, including protective equipment for staff.

In North America, the revenue fell by 7% due to stadiums, cinemas, and restaurants closure. In the past quarter, only Australia and New Zealand, Asia Pacific, and China segments had a growth of 15%. Everywhere else in the world, there have been declines in sales.

During today’s pre-market session, the stock price gained more than 2%. In three months, the stock gained 2.7%, while USA500 added 15.3%.

We are in the middle of the earnings season! Stay updated with!


Share this article

The information presented herein is prepared by and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.