PepsiCo and Coca-Cola topped Wall Street’s estimates for quarterly revenue on Thursday, supported by recent price increases and robust demand, but companies warned of pressure on earnings from relentless cost increases. .
Costs, from aluminum cans to labor and transportation, have soared due to pandemic-induced disruptions and the spread of the omicron variant, and companies have responded with price increases.
Demand has so far held up better than expected, but signs that the fastest rise in inflation in a generation may not slow down raise concerns that consumers may soon cut back on purchases.
PepsiCo expects core earnings of $6.67 per share for fiscal 2022, compared with analysts’ expectations of $6.73, according to IBES data from Refinitiv.
Coca-Cola predicts full-year adjusted earnings per share to increase 5% to 6% from the $2.32 recorded in 2021, compared with estimates for a 6% increase.
Still, company shares rose about 1% in premarket trading.
PepsiCo’s net revenue rose 12.4% to $25.25 billion in the fourth quarter, beating estimates of $24.24 billion, while Coca-Cola’s adjusted revenue rose 10.1% to $24.24 billion. 9.47 billion, beating estimates of US$ 8.96 billion.
PepsiCo on Thursday announced a 7% annual dividend increase and a new $10 billion share buyback program.
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