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Pepsico Misses on Revenues but Beats on EPS

By Seth Jayson - Updated Apr 7, 2017 at 12:18PM

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Just the facts, Fool.

Pepsico (NYSE: PEP) reported earnings on Oct. 17. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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