According to Amazon, the impact of currency on its revenue in 4Q14 meant that its revenue growth could have been 18% instead of 15%.
Amazon’s weak outlook is cause for concern. Amazon announced that it’s expecting revenue growth of between 6% and 16% in 1Q15. This is a worrying sign.
PepsiCo’s stock has appreciated by 20.7% since 2014 and has outperformed peers in the consumer staples sector like Coca-Cola, Mondelez, and Kellogg.
PepsiCo’s dividend has increased for 42 consecutive years. The company increased its 2014 dividend per share by 13.1% to $2.53 compared to the prior year.
PepsiCo’s snack and beverage businesses are complementary in nature and derive a lot of synergies.
PepsiCo’s focus on innovation includes Pepsi Spire 5.0 equipment, which allows consumers to create about 1,000 beverage combinations using a 32-inch touchscreen.
PepsiCo’s operating margin for 4Q14 decreased by 175 basis points to 10.2% compared to 4Q13, primarily due to pension settlement and restructuring charges.
PepsiCo’s Frito-Lay snack division’s revenue increased by 3% due to higher volume and pricing in 4Q14.
PepsiCo’s 4Q14 revenues declined by 0.8% to $19.9 billion, compared to the prior year quarter.
On the day PepsiCo’s 4Q14 earnings were released, stock surged by 2.46%.
PepsiCo (PEP) is the second largest non-alcoholic beverage maker and the market leader in the snack food space in the US.
eBay’s take rate fell from 3.79% in 2Q13 to 3.53% in 2Q14. However, the company isn’t worried about it since take rate is offset by healthy revenue growth.
eBay’s non-GAAP operating margins declined from 29.2% in 4Q13 to 27.7% in 4Q14. eBay still hasn’t recovered from the events that caused the decline.
In 4Q14, eBay Enterprise generated $1.9 billion in gross merchandise sales, up 9%. It was driven by new logos and 12% same-store sales growth.
To turn around eBay Marketplaces, eBay needs to sharpen its focus on strategies. Marketplaces president Devin Wenig is taking aggressive steps to do that.
eBay has stated that currency headwinds will impact the company’s revenue by about $600 million or 3% of growth due to the strengthening US dollar.
eBay plans to cut about 2,400 jobs, or 7% of its global workforce, to reduce complexity, speed decision-making, and create competitive cost structures.
Significant events in 2014 disrupted the ecosystem of eBay Marketplaces and stood as a hurdle in the progress the company had anticipated for 2014.
PayPal had a close-to-excellent year with revenue up 18% on an FX-neutral basis, to $2.2 billion. Quarterly revenues exceeded $2 billion for the first time.
Since 4Q14, eBay’s gross merchandise volume (or GMV) has declined 0.07% globally and 0.11% in the US market, eBay’s largest and most competitive market.