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

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Pepsi soft drinks are displayed at a convenience store in San Francisco, California.
Justin Sullivan | Getty Images

PepsiCo on Thursday reported quarterly earnings and revenue that topped analysts’ estimates, fueled by the growth of its snacks and drinks.

On the heels of its 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.

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