PepsiCo Posts Sales Outlook Better Than Estimates. But the Stock Is Falling.

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the soft drinks and snacks giant, reported fourth-quarter adjusted earnings of $1.53 a share on revenue of $25.3 billion, both higher than analysts’ estimates, and the company’s forecast for 2022 organic revenue growth also topped forecasts.

The stock, however, was down 2.5% to $167.66 on Thursday.

Analysts surveyed by FactSet were expecting earnings of $1.52 a share on revenue of $24.24 billion. A year earlier, PepsiCo (ticker: PEP) earned $1.47 a share on revenue of $22.5 billion. 

PepsiCo (ticker: PEP) also boosted its annual dividend and announced a new stock buyback program of up to $10 billion.

Organic revenue growth in the fourth quarter was 11.9%. For 2022, the company said it expects organic revenue growth of 6%, above estimates of 5.4%, according to analysts surveyed by Bloomberg.

“Additionally, we expect to deliver 8% core constant currency earnings per share growth, which reflects the impact of inflationary pressures across our value chain and planned investments in our business,” the company said in a statement.

Pepsi said it expects core earnings in 2022 of $6.67 a share, compared with Wall Street estimates of $6.73.

The company raised its annual dividend 7% to $4.60 a share, up from $4.30, and Pepsi’s board authorized a buyback of up to $10 billion of stock through February 2026.

At Frito-Lay North America, operating profit in the fourth quarter rose 10% and revenue rose 13% from a year earlier to about $6.2 billion, higher than forecasts. PepsiCo Beverages North America operating profit fell 10% on revenue of $7.64 billion, up 13%.

Write to Joe Woelfel…


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