Feb 10 (Reuters) – PepsiCo Inc forecast full-year earnings below analysts’ estimates on Thursday, signaling that the beverage giant anticipates recent price increases to only partially offset the hit from runaway inflation.
The company raised prices on its sodas and snacks at the end of last year, but sky-rocketing costs of everything from aluminum cans to labor and shipping have raised concerns among analysts that those price hikes will not be enough to offset the hit to margins.
Still, PepsiCo’s net revenue rose 12.4% to $25.25 billion in the fourth quarter ended Dec. 25 , beating analysts’ estimates of $24.24 billion, according to IBES data from Refinitiv.
The company said it expects fiscal 2022 core earnings per share of $6.67, compared with analysts’ expectations of $6.73.
PepsiCo shares rose 1.5% in premarket trading as it also announced a 7% increase in annualized dividend and a new $10 billion stock buyback program.