Post Earnings Coverage as Pepsico's Quarterly Earnings Surged 43%
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Upcoming AWS Coverage on Coca-Cola European Partners Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 1, 2017 / Active Wall St. announces its post-earnings coverage on Pepsico, Inc. (NYSE: PEP). The Company released its first quarter fiscal 2017 results on April 26, 2017. The food and beverage heavyweight surpassed top- and bottom-line expectations and also re-affirmed fiscal 2017 guidance. Register with us now for your free membership at:
One of Pepsico's competitors within the Beverages - Soft Drinks space, Coca-Cola European Partners PLC (NYSE: CCE), announced on will April 04, 2017, that it will release Q1 2017 earnings before trading begins on the NYSE on Thursday, May 04, 2017. AWS will be initiating a research report on Coca-Cola European Partners in the coming days.
Today, AWS is promoting its earnings coverage on PEP; touching on CCE. Get our free coverage by signing up to
For the three months ended March 25, 2017, Pepsico's revenue rose 1.6% to $12.05 billion compared to revenue of $11.86 billion in Q1 2016. The Company's revenue rose for a second consecutive quarter after posting a decline in revenue for eight consecutive quarters. Pepsico's revenue numbers surpassed analysts' consensus of $11.98 billion.
For Q1 2017, net income attributable to PepsiCo rose to $1.32 billion, or $0.91 per share, compared to net income of $931 million, or $0.64 per share, in Q1 2016. The Company's core earnings of $0.94 per share came in above Wall Street's estimates of $0.92 per share.
Quarterly Segment Details
For Q1 2017, revenue at the Company's Frito-Lay North America segment increased 2% to $4.35 billion, while Organic food/snacks volumes dropped 1.5%. The segment reported operating income of $1.06 billion up 4% compared to the year ago same period. The Company's Quaker Foods North America Q1 2017 revenue declined 3% on a y-o-y basis to $598 billion while organic volumes also decreased 1%.
During Q1 2017, North America Beverages division generated revenue of $4.46 billion up 2% on a y-oy- basis, while its operating profit increases 4% to $505 million. The Company's Latin America unit posted revenue of $1.08 billion an increase of 3%; however the segment's operating profit tumbled 24% to $132 million.
In Q1 2017, Pepsico's Asia, Middle-East, and North Africa revenue declined 9% to $970 million, while it reported positive operating income of $171 million compared to operating loss of $148 million in the year ago quarter. The Company's Europe Sub-Saharan Africa division revenue advanced 6% to $1.45 billion, while the segment's operating profit surged 51% to $102 million.
Balance Sheet
As of March 25, 2017, Pepsico's cash and cash equivalents were $9.53 billion compared to $9.16 billion as on December 26, 2016. The Company's long-term debt totaled $30.08 billion at the end of Q1 2017, up compared to long -term debt of $30.05 billion as on December 26, 2016. For the reported quarter, Pepsico's net cash used for operating activities were $199 million versus cash provided by operating activities of $305 million in the prior year's comparable period.
Outlook
PepsiCo reaffirmed its core earnings guidance at $5.09 per share. Excluding headwinds from currency and structural changes, the Company expects organic revenues to rise 3%. Currency is projected to impact revenues by 2%. Pepsico's management plans to return $6.5 billion to shareholders through dividends and share repurchases. The Company estimates approximately $10 billion in cash flow from operating activities and approximately $7 billion in free cash flow.
Stock Performance
At the close of trading session on Friday, April 28, 2017, Pepsico's share price finished the trading session at $113.28, marginally advancing 0.57%. A total volume of 4.87 million shares exchanged hands, which was higher than the 3 months average volume of 3.93 million shares. The stock has advanced 10.22% and 13.22% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 9.01%. The stock is trading at a PE ratio of 24.43 and has a dividend yield of 2.66%.
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