PepsiCo, Inc. (NYSE:PEP) early Wednesday posted mixed fourth quarter earnings results, offered a weaker than expected outlook, and lifted its quarterly dividend payout by 7%.

Written by StockNews.com

The Purchase, NY-based beverage and snack food giant reported adjusted Q4 EPS of $1.20, which was $0.04 better than the Wall Street consensus estimate of $1.16.

Revenues rose 5% from last year to $19.52 billion, just missing analysts’ $19.58 billion view.

PepsiCo noted that organic revenue grew 3.7% in the latest period, while core gross margin fell 25 basis points, but core operating margin gained 90 basis points.

Looking ahead, PEP forecast full-year 2017 EPS of $5.09, which is below Wall Street’s current $5.16 estimate. PepsiCo also expects 2017 organic revenue growth of “at least” 3%.

The company commented about its results, as well as its increased dividend, via press release:

“We concluded 2016 with another strong quarter of operating performance, capping off a successful year. We met or exceeded every financial goal we set for 2016, while delivering a good balance between revenue performance and productivity,” said Chairman and CEO Indra Nooyi. “Looking ahead to 2017, we expect solid financial performance despite anticipated continued macroeconomic challenges. Further, reflecting our commitment to providing attractive cash returns to shareholders, we are increasing our dividend per share for the 45th consecutive year, beginning with our June 2017 payment.”

...Year-to-date, PEP has gained 2.19%, versus a 4.55% rise in the benchmark S&P 500 index during the same period.

PEP currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 25 stocks in the Beverages category.