BUZZ-PepsiCo down after weak annual profit forecast, Q4 revenue miss

Updates

Shares of Frito-Lay maker PepsiCo PEP.O fall as much as 4.8% to $143.10

Company forecasts annual profit below expectations and misses Q4 revenue estimates on weakening demand for its sodas and snacks such as Lay's in the U.S.

"We expect our North America performance to gradually improve as the year progresses, and our commercial activities take hold" - executives, in the company's prepared remarks

PEP is aiming to offer multi-packs and mini canisters as well as introduce new items such as ethnic-inspired flavor offerings

"Investors have been waiting for the company to really address the issues which stem from inflation weary U.S. consumers and clear action has been spelled out today" - Danni Hewson, head of financial analysis at AJ Bell

"But changes to habits are tricky and with more consumers also ditching snacks for healthier options, there's still considerable work to do" - Hewson

PEP expects a low-single-digit increase for fiscal 2025 core earnings per share, compared with analysts' estimates of a 4.73% rise to $8.53 per share, according to data compiled by LSEG

In 2024, PEP shares fell 10.5%