PepsiCo Raises Dividend After Mixed Q4 Performance, Shares Fall As Annual Organic Revenue Outlook Disappoints
Portfolio Pulse from Nabaparna Bhattacharya
PepsiCo, Inc. (NASDAQ:PEP) reported Q4 FY23 sales of $27.85 billion, missing analyst estimates of $28.40 billion, leading to a premarket share price drop. Despite a sales decline of 0.5% YoY, adjusted EPS of $1.78 beat expectations. Operating profits in key segments fell significantly. The company announced a 7% dividend increase and expects a 4% rise in organic revenue and an 8% increase in core constant currency EPS for 2024.
February 09, 2024 | 1:04 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
PepsiCo's Q4 FY23 sales missed estimates, causing a premarket share price drop. However, adjusted EPS exceeded expectations. The company announced a dividend increase and provided a positive outlook for 2024.
The immediate negative reaction in premarket trading is due to the sales miss for Q4 FY23. However, the beat on adjusted EPS and the positive outlook for 2024, including a dividend increase, could mitigate some of the negative sentiment in the short term. The relevance is high as the news directly pertains to PepsiCo's financial performance and future expectations.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100