• PepsiCo reported 1Q core EPS of $1.61, surpassing the previous year’s $1.50 and the estimated $1.52.
• The company reported a net revenue of $18.25 billion, a 2.3% increase y/y, also beating the estimate of $18.07 billion.
• Frito-Lay North America revenue stood at $5.68 billion, marking a 1.7% increase y/y, although slightly below the estimated $5.72 billion.
• Quaker Foods North America revenue saw a decrease of 24% y/y, reaching $593 million, which is below the $604.5 million estimate.
• PepsiCo Beverages North America reported revenue of $5.87 billion, a slight increase from $5.80 billion y/y and above the estimate of $5.85 billion.
• Europe’s revenue increased by 2.7% y/y to $1.94 billion, slightly exceeding the estimate of $1.92 billion.
• In Latin America, the company reported an impressive 16% y/y increase in revenue to $2.07 billion, significantly over the estimated $1.95 billion.
• In Africa, Middle East & South Asia, PepsiCo posted a 2.1% y/y increase in revenue to $1.04 billion, surpassing the $991.7 million estimate.
• The revenue in Asia Pacific, Australia, New Zealand & China also rose by 5.8% y/y, reaching $1.06 billion and exceeding the $1 billion estimate.
• The company maintains its year forecast, seeing core EPS at least $8.15 and organic revenue at least a 4% increase, in line with estimates.
• PepsiCo announced an expected 7% annualized dividend increase starting with the June 2024 payment, marking their 52nd consecutive annual increase.
Pepsico Inc on Smartkarma
Analysts on Smartkarma have been closely following the coverage of Pepsico Inc. Value Investors Club, in their report titled “Pepsico Inc (PEP) – Thursday, Dec 21, 2023,” highlighted the company’s strong presence in both snacks and beverages, generating around $80 billion in revenue. Despite the challenges posed by COVID-19, PepsiCo has managed to maintain a robust performance, with specific segments like Frito Lay North America driving a significant portion of EBIT.
Another analysis by Baptista Research focused on PepsiCo’s commercial plan for Frito and the factors driving growth in 2024. The report emphasized PepsiCo’s consistent double-digit growth in topline business over the past three years. While facing challenges like a Quaker supply chain disruption, PepsiCo remains optimistic about its growth trajectory, strategizing around enhancing consumer interaction with brands and efficiently managing commodity inflation through forward purchasing practices.
A look at Pepsico Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Pepsico Inc is projected to have a promising long-term outlook. With a solid momentum score of 4, the company is showing strong trends in price performance. Additionally, Pepsico Inc received respectable scores in both dividend and growth categories, with scores of 3 for each, indicating a stable dividend payout and potential for expansion. However, the company scored lower in the value and resilience categories, scoring 2 in each, suggesting areas where improvement may be needed.
Pepsico Inc, a global player in the beverage, snack, and food industry, appears to have a mixed outlook based on the Smartkarma Smart Scores. While the company demonstrates strength in momentum, dividend, and growth factors, there are areas such as value and resilience that may require attention for future sustainability. As Pepsico Inc continues to operate in various countries worldwide, monitoring these key factors can provide insights into the company’s overall performance and potential growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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