The company’s shares increased by less than 1% in pre-market transactions.
Here’s what the company reported:
- Earnings per share: $ 1.07, adjusted
- Revenue: $ 13.88 billion
The owner of Frito-Lay reported first-quarter net profit of $ 1.34 billion, or 96 cents per share, compared to $ 1.41 billion, or $ 1.00 per share, a year earlier.
Excluding items, Pepsi earned $ 1.07 per share.
Net sales increased 7.7% to $ 13.88 billion.
Wall Street predicted earnings per share of $ 1.03 on revenue of $ 13.21 billion, according to analyst research by Refinitiv. However, it is difficult to compare the reported earnings to analysts’ estimates for the Pepsi quarter, as the coronavirus pandemic has made forecasting earnings difficult.
Pepsi withdrew its 2020 budget, citing “the uncertainties associated with the magnitude and duration of the Covid-19 pandemic on our business.” In February, the company said it expects organic growth of 4% in revenue and 7% growth in earnings per share after suppressing currency fluctuations in 2020.
However, the company still plans to buy back $ 2 billion in shares and spend $ 5.5 billion in dividends in fiscal 2020, even as many other publicly traded companies are suspending their share buyback programs and reduce their dividends to save money.