PepsiCo (NASDAQ:PEP) has reported quarterly earnings that handily beat analyst estimates.
The food and beverage company reported fiscal first-quarter earnings per share of $1.21 U.S. adjusted vs. $1.12 U.S. that had been expected by analysts.
Revenue for the quarter came in at $14.82 billion U.S. versus the $14.55 billion U.S. that analysts expected, and net income was $1.71 billion U.S., or $1.24 U.S. per share, up from $1.34 billion U.S., or 96 cents U.S. per share from a year earlier.
PepsiCo also reported that organic revenue, which strips out the impact of foreign currencies, acquisitions and divestitures, grew by 2.4% in the quarter as consumers maintained their pandemic snacking habits.
Frito-Lay’s organic revenue jumped 3% and new products such as Doritos 3D Crunch and Cheetos Crunch Pop Mix encouraged consumers to keep snacking this year. The company also reported double-digit revenue growth for its Bubly sparkling water and Starbucks ready-to-drink coffees.
Outside of North America, results were mixed as some foreign markets grappled with new virus outbreaks. Europe’s organic revenue was unchanged from a year earlier, while Africa, the Middle East and South Asia’s slipped 1%. Latin America’s organic revenue rose 3%, but the Asia-Pacific, Australia and New Zealand and China regions climbed 18%.
PepsiCo reiterated its 2021 forecast, which expects mid-single digit organic revenue growth and high-single digit constant currency earnings per share. PepsiCo is forecasting strong sales from its North American beverages unit as more consumers visit restaurants and movie theaters this year, but demand for Quaker Foods products will likely moderate the growth.
PepsiCo shares were little changed in pre-market trading Thursday.
