PepsiCo Posts Lower Q4 Results; Beats Views (PEP)

Before the opening bell on Wednesday, beverage company PepsiCo (PEP ) reported lower results for the fourth quarter, but beat analysts’ expectations.

PEP’s Earnings in Brief

• PEP reported earnings of $1.31 billion, or 87 cents per share, down 25% from $1.74 billion, or $1.12 per share, last year.
• Excluding special items, earnings were $1.12 per share – above analysts’ view of $1.08 per share.
• Revenue dipped to $19.948 billion from $20.12 billion last year. Analysts expected to see revenue of $19.66 billion.
• Looking ahead, PEP expects earnings to grow 7% in FY2015. Analysts expect to see EPS of $4.75.

CEO Commentary

Chairman and CEO Indra Nooyi commented: “As we look ahead to 2015, we expect to again deliver results consistent with our long-term financial objectives, despite the anticipated challenging and volatile global macro environment…we plan to return approximately $8.5 to $9 billion to shareholders through both higher dividends and share repurchases.”

PEP’s Dividend

PepsiCo announced that it has boosted its dividend by 7.3% to $2.81 per share annually. This is expected to take effect in June.

Stock Performance

Shares of PEP were up $1.61, or 1.64% during premarket trading Wednesday. The stock is up 3.63% YTD.

Click here to see the complete history of PEP dividends.

The Bottom Line

PepsiCo (PEP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.