- PepsiCo’s core EPS for the first quarter of 2025 fell short of expectations, with figures reported at $1.48 compared to the previous year’s $1.61 and below the estimate of $1.49.
- The standard EPS came out at $1.33, also lower than the previous year’s $1.48 and the expected $1.48.
- Operating profit stood at $2.58 billion, reflecting a 4.9% decrease from the previous year and missing the estimate of $2.78 billion.
- The company’s net revenue amounted to $17.92 billion, which showed a 1.8% decline year-over-year, although slightly above the expected $17.77 billion.
- PepsiCo Beverages North America reported revenue of $5.88 billion, marginally up from $5.87 billion in the previous year and surpassing the estimate of $5.83 billion.
- Organic revenue growth was recorded at +1.2%, down from +2.7% year-over-year but exceeding the estimate of +0.53%.
- For the year 2025, PepsiCo anticipates a low-single-digit increase in organic revenue.
- PepsiCo plans to return approximately $8.6 billion to its shareholders through dividends of $7.6 billion and share repurchases of $1.0 billion.
- The company expects core constant currency EPS to be approximately the same as the previous year due to higher supply chain costs related to tariffs and macroeconomic volatility.
- An expected foreign exchange translation headwind of about 3 percentage points is projected to adversely impact the reported net revenue and core EPS growth.
Pepsico Inc on Smartkarma
Analyst Coverage of PepsiCo Inc on Smartkarma
Analyst coverage of PepsiCo Inc on Smartkarma by Baptista Research provides valuable insights into the company’s current position and future prospects.
In the report titled “PepsiCo’s Great Beverage Meltdown: Is It Too Late for Its Soda Empire?“, author Ram Krishnan addresses the challenges PepsiCo faces in the soda market and outlines aggressive strategies for a turnaround. Despite slipping in rankings, the CEO’s efforts signal a determined push towards recovery in the core beverage business.
On a positive note, another report, “PepsiCo Inc.: Capitalizing On Away-From-Home Channels & Meal Solutions To Catalyze Growth!“, highlights the company’s focus on long-term growth strategies and careful financial navigation. PepsiCo’s emphasis on Frito-Lay business revitalization amidst market challenges is seen as a crucial move for sustained growth.
This analysis is further bolstered by “PepsiCo Inc.: Portfolio Diversification & Innovation As A Vital Tool For Growth! – Major Drivers“, where the company’s third-quarter 2024 results reveal both obstacles and strategic imperatives for future success. Despite growth deceleration, PepsiCo’s direction towards portfolio diversification and innovative initiatives underscores a commitment to adaptation and resilience in a shifting consumer landscape.
A look at Pepsico Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
PepsiCo Inc, a global leader in the beverage, snack, and food industry, continues to show strong potential for long-term growth. With notable Smart Scores of 4 for both Dividend and Growth, the company is well-positioned to deliver consistent returns to its investors while expanding its market presence. The Momentum score of 4 further indicates sustained positive market performance for PepsiCo, reflecting investor confidence in the company’s future prospects.
Despite some room for improvement in the Value and Resilience scores, rated at 2 and 3 respectively, PepsiCo remains a solid investment choice with its diversified portfolio and global reach. Incorporating a variety of grain-based snacks, carbonated and non-carbonated beverages, PepsiCo’s innovative products cater to consumer preferences worldwide, showcasing its resilience in challenging market conditions. Overall, PepsiCo’s strong fundamentals and strategic positioning suggest a promising outlook for the company in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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