08:48 AM EST, 02/04/2025 (MT Newswires) -- PepsiCo's ( PEP ) fourth-quarter earnings came in ahead of Wall Street's estimates, while revenue posted a surprise decline amid weakness in the beverage and snacks company's North American businesses.

Adjusted earnings came in at $1.96 a share for the three months through Dec. 28, up from $1.78 the year before and ahead of the FactSet-polled consensus of $1.94. Revenue edged down 0.2% year over year to $27.78 billion, compared with the Street's view for an increase to $27.89 billion. The stock was down 2.3% in premarket activity.

Overall net pricing had a positive impact of 3% on the topline, while consolidated organic volume slipped 1%. Volume increased by 1% each in the company's beverage and convenient food businesses.

"Our businesses remained resilient in 2024, despite subdued category performance trends in North America, the continued impacts related to a recall in our Quaker Foods North America division and business disruptions due to geopolitical tensions in certain international markets," Chief Executive Ramon Laguarta said in a statement. "Our enhanced multiyear productivity initiatives enabled us to invest in our businesses, and deliver improvements in our gross margin, operating margin expansion and EPS in 2024."

In North America, PepsiCo's ( PEP ) Frito-Lay snack business saw revenue decrease to $7.32 billion from $7.47 billion in the prior-year quarter. Quaker Foods' reported revenue fell to $874 million from $893 million. On an organic basis, revenue in both segments declined 2%. Sales in the beverages unit remained nearly flat at $7.91 billion.

"Looking ahead to 2025, we will continue to build upon the successful expansion of our international business, while also taking actions to improve performance in North America," according to Laguarta. "Our multiyear productivity initiatives will help fund disciplined commercial investments and aid our profitability."

For fiscal 2025, the company expects low-single-digit growth in both core EPS and organic revenue. The Street is looking for non-GAAP EPS of $8.52 and sales of $93.77 billion. In the previous fiscal year, adjusted EPS climbed to $8.16 from $7.62, while organic revenue moved 2% higher.

"We expect our North America performance to gradually improve as the year progresses, and our commercial activities take hold," Laguarta and Chief Financial Officer Jamie Caulfield said in prepared remarks published on the company's website. "We expect our International business to remain resilient, although geopolitical tensions and macroeconomic volatility may persist in certain markets."

PepsiCo ( PEP ) forecasts a foreign-exchange translation headwind of about three percentage points on reported revenue and adjusted EPS based on current rates.