PepsiCo Lower Following Earnings Release

Shares of PepsiCo, Inc. PEP continued to drift trade lower during Thursday's session after the company reported its fourth quarter results. After two hours of trading, shares were at $96.30, down nearly 1.5 percent.

The Dow Jones index was lower by around 2.25 percent at the same time, while the S&P 500 index was off by more than 1.75 percent.

PepsiCo said that it earned $1.06 per share in the fourth quarter on revenue of $18.59 billion. Wall Street analysts were expecting the company to earn $1.06 per share on revenue of $18.51 billion.

PepsiCo's organic revenue grew by 4 percent in the quarter, while net revenue declined 7 percent as foreign exchange rates had an 8-percentage point unfavorable impact. The company also noted that its earnings per share excludes a $0.16 per share non-cash tax benefit and a $0.01 per share benefit from a pension-related settlement and a $0.06 per share of restructuring and impairment charge.

"We are happy to report that we met or exceeded every financial goal we set for 2015, demonstrating consistent performance in the face of volatile macros," said Chairman and CEO Indra Nooyi. ""Our portfolio has been strategically designed to weather the current macroeconomic challenges. Our results reflect the balance of our brand portfolio, geographic footprint, consistent marketplace execution and a relentless focus on productivity. While facing the challenges of a choppy macro environment, we continued to make thoughtful investments in our future. By making investments in our brands, product innovation and supply chain, we have fortified our business for sustained growth. Notably, we increased advertising and marketing expense as a percentage of sales by 40 basis points for the full year and 85 basis points in the fourth quarter. "

PepsiCo also issued guidance and expects to earn $4.66 per share in the full fiscal year 2016. However, the company's estimates fell short of the $4.76 per share Wall Street analysts were already estimating.