PepsiCo (PEP) Q1 2021 earnings beat
Cases of Pepsi are shown for sale at a store in Carlsbad, California, April 22, 2017.
Mike Blake | Reuters
PepsiCo on Thursday reported quarterly earnings that topped analyst estimates as consumers maintained their pandemic snacking habits.
Shares of the company rose 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: $1.21 adjusted vs. $1.12 expected
- Revenue: $14.82 billion vs. $14.55 billion expected
Pepsi reported fiscal first-quarter net income of $1.71 billion, or $1.24 per share, up from $1.34 billion, or 96 cents per share, a year earlier.
Excluding items, the food and beverage giant earned $1.21 per share, beating the $1.12 per share expected by analysts surveyed by Refinitiv.
Net sales rose 6.8% to $14.82 billion, topping expectations of $14.55 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, grew by 2.4% in the quarter.
Frito-Lay North America’s organic revenue jumped 3%. New products like Doritos 3D Crunch and Cheetos Crunch Pop Mix encouraged consumers to keep snacking. The segment’s profits, however, were hurt by February’s winter storms.
The North American beverage business reported organic revenue growth of 2%. The company saw double-digit revenue growth for its Bubly sparkling water and Starbucks ready-to-drink coffees.
Quaker Foods North America’s organic revenue rose just 1% in the quarter. The segment has benefitted the most from the at-home breakfast trend, which could disappear as more consumers return to their offices.
The company reiterated its 2021 forecast, which expects mid-single digit organic revenue growth and high-single digit constant currency earnings per share. Pepsi is predicting strong sales from its North American beverages unit as more consumers visit restaurants and movie theaters, but demand for Quaker Foods products will likely moderate.