Categories AlphaGraphs, Earnings, Retail

PepsiCo edges past market estimates in Q2

Beverage giant PepsiCo (NASDAQ: PEP) on Tuesday reported second-quarter earnings and revenues that topped earnings estimates. Revenues grew 2.2% to $16.45 billion, edging past analysts’ estimate for $16.42 billion. On an organic basis, revenue grew 4.5%.

The snack business continued to outperform in Q2, with organic revenue growth of 5%. The segment was also returned 4.5% higher adjusted constant currency profits. Meanwhile, the Quaker Foods North America, despite seeing a 3% organic revenue growth, saw its profits plunge double-digits.  

PepsiCo Q2 2019 earnings infographic

Core earnings fell 4.3% year-over-year to $1.54 per share, beating the street estimate of $1.50 per share.

PEP shares were up 0.5% during pre-market trading on Tuesday. The stock has gained 22% so far this year.

Ramon Laguarta, who took charge as PepsiCo CEO in October last year, expressed confidence of meeting the full-year targets set by the beverage company.

READ: Why is it the right time to invest in beverage stocks?

PepsiCo reiterated its guidance of full-year organic revenue growth of 4%. For this period, core EPS is projected to fall 3% to $5.50 per share.

PepsiCo continues to boost its strong product portfolio through innovation and strategic partnerships. The company recently teamed up with Lavazza to launch iced coffee in the UK. PepsiCo’s diversification efforts through various acquisitions and partnerships are likely to pay off in driving growth going forward.

Pepsi’s primary competitor The Coca Cola Company (NYSE: KO) is slated to report financial results two weeks later.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Lennar (LEN) believes that despite near-term challenges, the long-term prospects for housing remain strong

Shares of Lennar Corporation (NYSE: LEN) were down 3% on Monday. The stock has dropped 36% year-to-date and 25% over the past 12 months. The homebuilder delivered mixed results for

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top