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PepsiCo increased its annual dividend by 10%, its 51st consecutive annual increase.
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PepsiCo
beat earnings and revenue estimates in the fourth quarter, driven by higher prices. It increased its annual dividend, sending the stock higher in premarket trading Thursday.
The beverages and snacks giant (ticker:PEP) reported adjusted earnings per share (EPS) of $1.67 on sales of $28 billion. Analysts were expecting EPS of $1.65 on sales of $26.8 billion.
The company also announced a 10% increase to its annual dividend—the 51st consecutive annual hike—and said it planned to repurchase $1 billion worth of shares in 2023.
Price hikes, along with productivity savings, helped
PepsiCo
to increase operating profit in several segments including its Frito-Lay and PepsiCO beverages businesses in North America, despite higher commodity costs.
However, the company’s full-year 2023 guidance for EPS of $7.20 came in below the
FactSet
consensus of $7.20.
CEO Ramon Laguarta said he expected inflationary pressures to persist in 2023, in prepared management remarks published early Thursday. “We plan to mitigate the impact of these pressures by accelerating our productivity initiatives and sharpening our revenue management capabilities,” he said.
The stock, which has fallen more than 5% so far in 2023, rose 1.6% ahead of the open Thursday.
Write to Callum Keown at callum.keown@barrons.com
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