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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.

PEP Dividend Snapshot

As of market close on February 10, 2015

PEP dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of PEP dividends.

The Bottom Line

PepsiCo (PEP ) is not recommended at this time, holding a 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.