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PepsiCo (PEP) Q4 Earnings Beat Estimates, Revenues Miss
PepsiCo (PEP) Q4 Earnings Beat Estimates, Revenues Miss
About this update from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-
PepsiCo, Inc. PEP has reported robust fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate and improved year over year. The top line missed the consensus estimate and declined year over year.The results reflect gains from strength and resilience in its categories, diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems, and robust consumer demand trends. However, soft volumes hurt the top line.PEP shares declined 2.1% in the pre-market session following the earnings release on Feb 9, owing to soft fourth-quarter sales results. Shares of the Zacks Rank #3 (Hold) company have gained 4.1% in the past three months compared with the industry’s 7.4% growth. Quarter in DetailPepsiCo’s fourth-quarter core EPS of $1.78 beat the Zacks Consensus Estimate of $1.72 and increased 6.6% year over year. In constant currency, core earnings improved 9% from the year-ago period, backed by the mitigation of inflationary pressures through cost-management and revenue-management initiatives. The company’s reported EPS of 94 cents rose 152% year over year in the quarter. Adverse currency rates impacted EPS by 2% in the quarter.Net revenues of $27,850 million declined 0.5% year over year and missed the Zacks Consensus Estimate of $28,242 million. Revenues were impacted by a unit volume decline of 3% for the convenient food business and were down 2% for the beverage business. This was partly offset by an improved price/mix in the reported quarter. Foreign currency impacted revenues by 1.5%.On an organic basis, revenues grew 4.5% year over year, driven by growth across categories and geographies. The consolidated organic volume was down 4%, while effective net pricing improved 9% in the fourth quarter. Pricing gains were driven by strong realized prices across all segments.Our model predicted organic revenue growth of 6.2% for the fourth quarter, with a 9.6% gain from price/mix and a 3.5% decline in volume.PepsiCo, Inc. Price, Consensus and EPS SurprisePepsiCo, Inc. price-consensus-eps-surprise-chart | PepsiCo, Inc. QuoteOn a consolidated basis, the reported gross profit increased 1.2% year over year to $14,753 million. The core gross profit rose 1.3% year over year to $14,898 million. The reported gross margin expanded 91 basis points (bps), whereas the core gross margin expanded 97 bp...