PepsiCo (NASDAQ:PEP) fell 0.5% in premarket trading on Friday, despite its fourth quarter earnings matching analysts' expectations after it said underlying profit would fall slightly this year.
While Pepsico (NASDAQ:PEP) expects its 2019 underlying profits to be flat in 2019, a sharp increase is expected in 2020, Chairman and CEO Ramon Laguarta said in a press release.
"For 2019, we expect 4% organic revenue growth and approximately 1% decline in core constant currency EPS.... Importantly, we expect to return to high-single-digit core constant currency EPS growth in 2020," Laguarta said.
The firm reported earnings per share of $1.49 on revenue of $19.52 billion, which was in line with forecasts polled by . The numbers compared to EPS of $1.31 on revenue of $19.53 billion in the same period a year earlier. The company had reported EPS of $1.59 on revenue of $16.49 billion in the previous quarter.
“While adverse foreign exchange translation negatively impacted reported net revenue performance, our underlying organic revenue growth accelerated in the second half, and we ended the year with 4.6% organic revenue growth in the fourth quarter," Laguarta said in a press release.
The company's profit was increased by its Frito-Lay and Quaker Foods divisions, while its North America Beverages division profit declined 12% due to operating cost increases.
The beverage company also increased its annualized dividend to $3.82 from $3.71 per share, effective in June 2019.
For the year, PepsiCo shares are up 1.91%, under-performing the S&P 500 which is up 10.85% year to date.
PepsiCo follows other major Consumer/Non-Cyclical sector earnings this month
On January 23, Procter&Gamble reported second quarter EPS of $1.25 on revenue of $17.44B, compared to forecasts of EPS of $1.21 on revenue of $17.16B.
Coca-Cola earnings matched analyst's expectations on Thursday, with fourth quarter EPS of $0.43 on revenue of $7.1B. analysts expected EPS of $0.43 on revenue of $7.06B
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