US: PepsiCo reduces long-term earnings forecasts
The group's growth target for annual earnings per share is 13% to 14% and PepsiCo said it expects to hold that rate through 2003. However, after that the company expects growth in earnings per share to be in the "low double digits." Revenue growth, once projected at 7%, is expected to be slightly above annual volume growth of 4% to 5%.
"The world has changed," said PepsiCo CEO, Steven Reinemund. "The environment is less certain." Reinemund said that while the company internally is sticking to the old targets, he felt the goals should be lowered publicly given that challenges could arise. Analysts generally supported the move, saying it would make PepsiCo's results more predictable.
For the quarter to the end of June 15, PepsiCo reported net income of $940m, or 52 cents a share, compared with $824m, or 45 cents a share, a year earlier. Revenue was up by 2.3% to $6.18 billion from $6.04 billion.
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- just the Ten - Top News Stories of 2014
- Review of the Year 2014 - Part II: Beer & Cider
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Diageo ups focus on China with Mortlach roll-out
- Diageo rolls out Beckham's Haig Club to US
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- just-drinks on-trend: Craft beer - fortunes and future