HomeNewsPepsiCo’s fourth-quarter earnings surpass analysts’ estimates

PepsiCo’s fourth-quarter earnings surpass analysts’ estimates

Hassan Maishera

Beverage giant PepsiCo has published its fourth-quarter earnings today, and the company performed excellently.

PepsiCo published its fourth-quarter 2021 earnings earlier today, and the company’s revenue surpassed what Wall Street analysts had expected.

In the fourth quarter of last year, the company recorded $25.25 billion, surpassing the analysts’ estimate of $24.24 billion. The earnings per share for the company in the previous quarter was $1.53, which is above the $1.52 that market analysts had predicted.

The earnings rose as the global economy slowly came out from the pandemic. The food and beverage giant’s net income for the previous quarter was $1.32 billion, or 95 cents per share. This is down from the $1.85 billion, or $1.33 per share recorded in the same quarter of 2020.

PepsiCo’s organic revenue increased by 11.9% in Q4 2021, surpassing the impacts of acquisitions and divestitures. For the current fiscal year, the company said it expects organic revenue growth of 6%.

The company added that it expects to return about $7.7 billion to shareholders by the end of the year. This will include dividends of $6.2 billion and share buybacks of roughly $1.5 billion.

Despite the positive results recorded in the previous quarter, it admits that it is now feeling the impacts of inflation across its businesses. PepsiCo warned of cost pressures for the coming year from the rising price of transportation and packaging.

The shares of the company are down by more than 1% since the US market opened a few hours ago. This comes despite the fact that the company recorded a better-than-expected earnings report. At press time, PEP is trading at $169.84, down by 1.22% over the past few hours.

PEP performed well last year, surging by more than 20% over the past 14 months. The company is now roughly valued at over $237 billion.