PepsiCo, Inc. Beats Q1 Estimates; Stock Soars (PEP)

Before the opening bell on Thursday, PepsiCo (PEP) reported its first quarter earnings, posting higher EPS and organic revenue than last year’s Q1.

PEP’s Earnings in Brief

PepsiCo reported first quarter revenues of $12.62 billion, which were up from last year’s Q1 revenues of $12.58 billion. Net income for the quarter came in at $1.23 billion, a 13% increase from last year’s Q1 net income of $1.09 billion. The company's core Q1 EPS was 83 cents, marking a 7% increase over last year’s Q1 figure. PEP was able to beat analysts’ estimates of 75 cents EPS on revenues of $12.43 billion. For 2014, PepsiCo expects core EPS to grow by 7%.

CEO Commentary

PEP’s chairman and CEO Indra Nooyi had the following comments about the company’s Q1 earnings: ”We’re pleased with our performance in the first quarter of 2014. PepsiCo delivered mid-single-digit organic revenue growth and double-digit core constant currency earnings per share growth, despite ongoing macroeconomic volatility, political instability and other challenging marketplace conditions in a number of our key markets. We continue to perform well, in part, because we have strong, balanced portfolios of brands, products and geographies that enable us to capture growth opportunities across multiple demand spaces while  we responsibly manage through the volatility and challenges in other parts of the business.”

PEP’s Dividend

PepsiCo’s last dividend raise was announced at the end of April 2013, when the company boosted its quarterly payout to 57 cents from 54 cents. We expect a similar move to be announced in the new few weeks.

Stock Performance

PEP stock was up $2.44, or 2.91%, in pre-market trading. YTD, the company’s stock is up 3.25%.

PEP Dividend Snapshot

As of Market Close on April 16, 2014

Click here to see the complete history of PEP dividends.