The 10-second takeaway
For the quarter ended Sep. 8 (Q3), Pepsico missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank.
Gross margins increased, operating margins were steady, net margins were steady.
Pepsico tallied revenue of $16.65 billion. The 12 analysts polled by S&P Capital IQ anticipated a top line of $16.97 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $17.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.20. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.16 per share. GAAP EPS of $1.21 for Q3 were 3.2% lower than the prior-year quarter's $1.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.0%, 110 basis points better than the prior-year quarter. Operating margin was 16.8%, about the same as the prior-year quarter. Net margin was 11.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $19.79 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $65.57 billion. The average EPS estimate is $4.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,400 members out of 4,550 rating the stock outperform, and 150 members rating it underperform. Among 1,183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,153 give Pepsico a green thumbs-up, and 30 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pepsico is outperform, with an average price target of $74.91.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.