PepsiCo on Friday reported quarterly earnings and revenue that met analysts’ expectations, but is forecasting weaker-than-expected earnings for 2019, like rival Coca-Cola.
The food and beverage giant is forecasting that it will earn $5.50 per share during 2019, down from its 2018 earnings per share of $5.66. Wall Street had expected the company to earn $5.86 in 2019, according to Refinitiv estimates.
Among other factors, PepsiCo called out an increased tax rate and currency headwinds as reasons for the weak outlook. Excluding currency fluctuations, it expects full-year earnings per share to decline by 1 percent.
The company also said in a statement that it plans to make 2019 “a year of substantial investment,” including increasing merger and acquisition activity.
Shares of the company dropped less than 1 percent.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.49 vs. $1.49 expected
- Revenue: $19.52 billion vs. $19.52 billion expected
PepsiCo reported fiscal fourth-quarter net income of $6.85 billion, or $4.83 per share, up from a loss of $710 million, or 50 cents per share, a year earlier.
Excluding merger and integration charges, net tax benefits and other items, PepsiCo earned $1.49 per share, in line with Wall Street’s expectations.
The company reported net sales of $19.52 billion, matching analysts’ expectations and unchanged from a year earlier.
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