PepsiCo’s stock falls after a surprise revenue decline, while profit beat views and the dividend was raised

Shares of PepsiCo Inc.
PEP,
+1.39%
fell 1.1% to pull back from a five-month high in premarket trading Friday, after beverage and snack giant reported a surprise drop in fourth-quarter revenue, amid weakness in the North America businesses, but beat profit expectations and raised its dividend by 7%. Net income jumped to $1.3 billion, or 94 cents a share, from $518 million, or 37 cents a share, in the year-ago period. Excluding nonrecurring items, core earnings per share of $1.78 beat the FactSet consensus of $1.72. Revenue slipped 0.5% to $27.85 billion, while the FactSet consensus called for an increase of 1.4% to $28.40 billion. Among the company’s business segments, PepsiCo Beverages North America revenue fell 2%, Frito-Lay North America revenue declined 3% and Quaker Foods North America revenue sank 16%. Looking ahead, the company expects 2024 core EPS of “at least” $8.15, compared with the FactSet consensus of $8.15. Separately, the company said it raised its annual dividend to $5.42 a share from $5.06 a share, effective in June. The stock has gained 4.6% over the past three months through Thursday, while the Consumer Staples Select Sector SPDR ETF
XLP,
-0.03%
has tacked on 7.8% and the S&P 500
SPX,
+0.06%
has advanced 15%.