What factors influenced PEP's earnings surprises in 2024?

PepsiCo's (PEP) earnings surprises in 2024 were influenced by a combination of factors that impacted its financial performance: 1. **International Business Performance**: PepsiCo's international operations were a significant growth driver, with robust performance in regions like Europe and Asia. The international segment contributed to the company's nearly $40 billion in international revenue. This growth was supported by strategic investments and a diversified portfolio, which helped to mitigate challenges in other regions. 2. **Product Innovation and Market Share Gains**: The company's focus on health-conscious product innovations and strategic restructuring of international operations contributed to its performance. PepsiCo maintained market share gains in key segments, such as Frito-Lay, with nearly 200 basis points over the past years. This strategic focus likely led to improved revenue and profitability in certain segments. 3. **Cost Management and Revenue Management Initiatives**: PepsiCo's effective cost controls and revenue management strategies helped to mitigate the impact of inflationary pressures and currency fluctuations. These initiatives were crucial in maintaining profit margins and EPS growth despite challenging market conditions. 4. **Dividend Increases and Share Repurchases**: PepsiCo continued its track record of increasing dividends, with an announcement of a 5% increase in its quarterly dividend, bringing the annual rate to $5.69 per share. This consistent dividend growth may have influenced investor perceptions positively, although it does not directly impact earnings. Additionally, the company's share repurchases, such as the plan to repurchase approximately $1 billion worth of shares, can boost earnings per share by reducing the number of shares outstanding. In summary, PepsiCo's earnings surprises in 2024 were primarily driven by strong performance in its international business, effective cost and revenue management, and strategic initiatives such as product innovation and market share gains. The company's commitment to dividend increases and share repurchases also contributed to its financial performance and market perception.