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PepsiCo Third Quarter Earnings
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PepsiCo (NYSE:PEP) announced its results for the most recent quarter on October 17, 2012. PepsiCo is a global company that manufactures a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports
The Numbers: PepsiCo's EPS outpaced analyst estimates while the company's revenues came in line with predictions. The company reported $1.21 per share versus the $1.09 per share estimate and revenues of $16.65 billion versus the $16.66 billion estimate. Revenue fell 5.3% from the same period last year while EPS is down 3.2%. Revenue declined last quarter after shrinking 2.2% to $16.46 billion in the second quarter. PepsiCo's profit for the third quarter was down 4.9% to $1.9 billion. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 21.1% in the second quarter and 1.4% in the first quarter.
Management Quote: "PepsiCo is diligently executing the strategy we set forth at the start of the year, and we remain on track to achieve our full-year targets," said PepsiCo Chairman and CEO Indra Nooyi. "Our disciplined pricing and sustained investment in brand building drove five percent organic net revenue growth reflecting one percent organic volume growth and four percent effective net pricing."
A Look Back: Margins rose in the second quarter after falling the quarter before. Gross margins grew to 53%, up one percentage points from the year-earlier quarter. In the first quarter, the figure rose 0.8 percentage point to 51.9% from the year earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.20 per share, down from $1.22 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is now $4.06 per share, down from $4.10 60 days ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports
The Numbers: PepsiCo's EPS outpaced analyst estimates while the company's revenues came in line with predictions. The company reported $1.21 per share versus the $1.09 per share estimate and revenues of $16.65 billion versus the $16.66 billion estimate. Revenue fell 5.3% from the same period last year while EPS is down 3.2%. Revenue declined last quarter after shrinking 2.2% to $16.46 billion in the second quarter. PepsiCo's profit for the third quarter was down 4.9% to $1.9 billion. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 21.1% in the second quarter and 1.4% in the first quarter.
Management Quote: "PepsiCo is diligently executing the strategy we set forth at the start of the year, and we remain on track to achieve our full-year targets," said PepsiCo Chairman and CEO Indra Nooyi. "Our disciplined pricing and sustained investment in brand building drove five percent organic net revenue growth reflecting one percent organic volume growth and four percent effective net pricing."
A Look Back: Margins rose in the second quarter after falling the quarter before. Gross margins grew to 53%, up one percentage points from the year-earlier quarter. In the first quarter, the figure rose 0.8 percentage point to 51.9% from the year earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.20 per share, down from $1.22 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is now $4.06 per share, down from $4.10 60 days ago.
by
Investopedia Staff
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