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Pepsico Q4 Results Beat; Sees 2020 Profit Below View

pepsico feb13 lt

Pepsico Inc. (PEP) Thursday reported a profit for the fourth-quarter that sharply declined from last year, which included a huge tax benefits. However, both core earnings and revenue beat analysts' estimates. The company has provided weaker-than-analysts estimations for 2020.

For 2020, the company expects to deliver 4 percent organic revenue growth and 7 percent core constant currency earnings per share growth.

The company projects annual core earnings per share of $5.88, a 6 percent increase compared to 2019 core earnings per share of $5.53. Analysts expect annual earnings of $5.95 per share.

The company announced a 7 percent increase in its annualized dividend to $4.09 per share from $3.82 per share that is expected to be paid in June 2020.

The food and beverage giant reported that its fourth-quarter net income attributable to the company plunged to $1.77 billion or $1.26 per share from $6.85 billion or $4.83 per share in the same quarter last year. The prior year quarter included a tax benefits of $4.39 billion.

Core earnings for the quarter were $2.04 billion or $1.45 per share compared to $2.12 billion or $1.49 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter grew 5.7 percent to $20.64 billion from $19.52 billion last year. Analysts expected revenues of $20.27 billion for the quarter. Organic revenue growth was 4.3 percent.

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