Pepsi revenue up 8.8% fueling earnings beat, sees 2021 results meeting long-term targets

  • PepsiCo topped Wall Street's estimates for its fourth-quarter earnings and revenue.
  • In 2021, the company is anticipating mid-single digit growth in organic revenue and high-single digit growth in core earnings per share.
  • Pepsi benefited from the continuation of pandemic snacking trends, as well as strong sales of its drinks.

PepsiCo on Thursday reported fourth-quarter earnings that topped estimates, fueled by pandemic snacking and higher sales of drinks like Gatorade Zero and Bubly sparkling water.

On the heels of the strong quarter, the Frito-Lay owner said that it expects its 2021 results to meet long-term financial targets.

Shares of the company fell less than 1% in premarket trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.47, adjusted, vs. $1.46 expected
  • Revenue: $22.46 billion vs. $21.78 billion expected

The company reported fiscal fourth-quarter net income of $1.85 billion, or $1.33 per share, up from $1.77 billion, or $1.26 per share, a year earlier.

Excluding items, Pepsi earned $1.47 per share, beating the $1.46 per share expected by analysts surveyed by Refinitiv.

Net sales rose 8.8% to $22.46 billion, topping expectations of $21.78 billion.

In 2021, Pepsi is anticipating mid-single digit growth in organic revenue and high-single digit growth in core earnings per share, which assumes constant foreign currency exchange rates. The company is also hiking its dividend by 5%, starting in June.

"For 2021, we are planning for our organic revenue and core constant currency EPS growth to be consistent with our long-term objectives," CEO Ramon Laguarta said in a statement.

Read the full report here.

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