Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

PepsiCo, Inc. (PEP) Beats

PepsiCo, Inc. (NYSE:PEP) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 23 (Q1), Pepsico met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew. GAAP earnings per share shrank slightly.

Gross margins grew, operating margins dropped, net margins contracted.

Revenue details
PepsiCo, Inc. (NYSE:PEP) tallied revenue of $12.58 billion. The 12 analysts polled by S&P Capital IQ foresaw a top line of $12.52 billion on the same basis. GAAP reported sales were the same as the prior-year quarter’s.

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 $0.77. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.70 per share. Non-GAAP EPS of $0.77 for Q1 were 12% higher than the prior-year quarter’s $0.69 per share. GAAP EPS of $0.69 for Q1 were 2.8% lower than the prior-year quarter’s $0.71 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 53.6%, 100 basis points better than the prior-year quarter. Operating margin was 13.2%, 90 basis points worse than the prior-year quarter. Net margin was 8.5%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter’s average estimate for revenue is $17.06 billion. On the bottom line, the average EPS estimate is $1.21.

Next year’s average estimate for revenue is $67.90 billion. The average EPS estimate is $4.39.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,390 members out of 4,546 rating the stock outperform, and 156 members rating it underperform. Among 1,278 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,245 give PepsiCo, Inc. (NYSE:PEP) a green thumbs-up, and 33 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PepsiCo, Inc. (NYSE:PEP) is outperform, with an average price target of $79.15.

The article Pepsico Beats Analyst Estimates on EPS originally appeared on Fool.com.

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 recommends PepsiCo, Inc. (NYSE:PEP). The Motley Fool owns shares of PepsiCo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Loading Comments...