PepsiCo 1Q sales slip, miss Wall Street's view
PURCHASE, N.Y. (AP) — PepsiCo's net income and sales dipped in the first quarter, stung by a strong dollar and some weakness overseas.
But its adjusted earnings topped expectations.
For the period ended March 19, sales declined to $11.86 billion from $12.22 billion. That's below the $11.9 billion that analysts polled by Zacks Investment Research expected.
The Purchase, New York-based company said Monday that sales in the Europe Sub-Saharan Africa region were hurt by higher raw material costs, mostly driven by the strong dollar. It was also hampered by operating cost inflation, an impairment charge and increased advertising and marketing expenses.
PepsiCo Inc. earned $931 million, or 64 cents per share, in the period. A year earlier the food and beverage company earned $1.22 billion, or 81 cents per share.
Stripping out an impairment charge, earnings were 89 cents per share.
This beat the 81 cents per share Zacks analysts were looking for.
Going forward, PepsiCo anticipates 2016 adjusted earnings of $4.66 per share. Analysts polled by FactSet predict $4.70 per share.
Shares of PepsiCo edged up $1 to $104.77 in premarket trading more than two hours ahead of the market open.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PEP at http://www.zacks.com/ap/PEP
Keywords: PepsiCo, Earnings Report, Priority Earnings