PepsiCo Beats Wall Street's First-Quarter Earnings Estimates in a Big Way

PepsiCo (NYSE: PEP  ) reported fiscal 2014 first-quarter earnings today before the market opened. The soda and snack giant blew past analyst estimates in the quarter, earning a profit of $0.83, which was eight cents better than the Street's forecasts. Wall Street was looking for earnings per share of $0.75 in the quarter. Pepsi's revenue of $12.6 billion was flat from the year-ago quarter, but it topped analyst estimates for revenue of $12.4 billion in the period.

Source: The Motley Fool.

Pepsi has been under pressure recently from activist investor Nelson Peltz to spin off its snack business from the soda business. "We continue to perform well, in part, because we have strong, balanced portfolios of brands, products and geographies that enable us to capture growth opportunities across multiple demand spaces while we responsibly manage through the volatility and challenges in other parts of the business," said Indra Nooyi, Pepsi's chief executive, in the company's press release.

The company, whose brands include Frito-Lay, Gatorade, Mountain Dew, and Tropicana, said global snack volume rose 2% while beverages were even from a year ago. In its closely watched North American beverage unit, PepsiCo said volume was even for the quarter ended March 22 as a 1% decline in sodas was offset by growth in other drinks. Core revenue rose as the company raised prices.

In the year ahead, Pepsi said it would return $8.7 billion to shareholders -- a 35% year-over-year increase -- through $3.7 billion in dividends and $5 billion  in share repurchases. The stock currently boasts a dividend yield of 2.7%. Shares of PepsiCo were up slightly in early trading on the news.

-- Material from The Associated Press was used in this report.

 


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  • Report this Comment On April 17, 2014, at 1:23 PM, BretaSal wrote:

    That's a surprise :D Didn't think Pepsico will do this good.. See the reasons for this unexpected News: http://goo.gl/TPZ8E6

  • Report this Comment On April 17, 2014, at 1:39 PM, TERRYSHANE wrote:

    P E P S I B E A T S THE S T R E E T !!!!!!!!!! WORD WAS LEAKED OUT BEFORE TODAY'S ANNOUNCEMENT THAT PEPSI BEAT WALL STREETS ESTIMATES. YOU CAN CLEARLY SEE THAT IN THE PEPSI TRADING VOLUME. (SIGNAL # 1) 4 DAYS AFTER THE QUARTER "CLOSED" ON APRIL 4 THE DAILY VOLUME WAS 4 MILLION SHARES ON THE FOLLOWING MONDAY "AFTER THE NUMBERS HAD BEEN DIGESTED" ON APRIL 7TH NORMAL DAILY VOLUME HAD DOUBLED TO OVER 8 MILLION SHARES A DAY FROM THE PREVIOUS CLOSE. (SIGNAL # 2) WE WILL HAVE TO LOOK AT SHORT PERIODS OF TIME IN TRADING. IE. LAST FRIDAY APRIL 10TH. IN JUST 5 MINUTES AT 1:59 TO 2:04 PM TRADES WENT THRU TOTALING 619,000 THAT WAS MORE THAN THE PAST ENTIRE 60 MINUTES OF TRADING COMBINED IN JUST A BRIEF 5 MINUTE TIME FRAME. THE SHARES SOLD @ OR NEAR $83.25 PER SHARE. IN FACT THE PREVIOUS 20 MINUTES THE AVERAGE SHARES TRADED PER MINUTE WAS JUST 6,045 SO IN JUST THAT 5 MINUTE SPAN 123,800 TRADES PER MINUTE WERE EXECUTED. THEN AT 4:04 PM ANOTHER HUGE PURCHASE OF 431,000 SHARES WAS MADE @ $83.16 PER SHARE. VOLUME IN THE LAST 2 HOURS WAS ALMOST 3 MILLION SHARES OR 24,107.5 SHARES PER MINUTE WHICH IS SIX TIMES THE NORM. THOSE FIGURES ARE THE AVERAGE FOR A NORMAL HALF DAY TO THE QUARTERS OF TRADING DAY, BUT IN JUST TWO HOURS. THE SAME PATTERN OF TRADING CONTINUED FOR THE NEXT THREE DAYS. (SIGNAL # 3) ON MONDAY APRIL 14 THE LAST 20 MINUTES OF TRADING VOLUME WAS 1,420,200 SHARES. (71,010 SHARES PER MINUTE) THAT IS TEN TIMES THE DAILY NORM. (SIGNAL # 4)THE LAST 2O MINUTES OF TRADING TUESDAY AND (SIGNAL # 4) WEDNESDAY WERE NEARING THE SAME AND ALL OF THIS ACTIVITY WAS BEFORE PEPSI ANNOUNCED IT HAD BEATEN THE STREET. SO A GOOD HINT IS BEFORE A COMPANY IS REPORTING RESULTS LOOK AT TRADING VOLUME IN SHORT TIME FRAMES AND OR ON HUGE BLOCKS IN THE WEEKS AND DAYS BEFORE AN ANNOUNCEMENT DON'T JUST LOOK AT A FEW DAYS LEADING UP TO AN ANNOUNCEMENT. ALL THESE FIGURES ARE AVAILABLE AT YAHOO FINANCE.COM THANKS FOR VIEWING MY RANT (TERRY SHANE)

  • Report this Comment On April 18, 2014, at 9:07 AM, suthanalley wrote:

    Pepsi perform better and announced its first quarter result for fiscal 2014(1QFY14;ended Mar 22,2014) as regarding to them they upbeat earnings from its North American Snack Foods Segment. In order to view more http://bit.ly/1ePRu1m

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