PepsiCo (NASDAQ: PEP) saw its stock surge Wednesday, on reporting quarterly earnings and revenue that topped analysts’ expectations, thanks to continued growth internationally and by its Frito-Lay snack business.
The company reported earnings per share of 97 cents, adjusted, compared to. 92 cents experts expected, while revenue: $12.88 billion vs. $12.70 billion expected
The Frito-Lay owner reported fiscal first-quarter net income of $1.41 billion, or $1 per share, up from $1.34 billion, or 94 cents per share, a year earlier.
Excluding restructuring and impairment charges, tax benefits and other items, PepsiCo earned 97 cents per share, topping the 92 cents per share expected by analysts.
Net sales rose 2.6% to $12.88 billion, beating expectations of $12.70 billion. Frito-Lay was the standout this quarter with sales growing 5.5% from last year. PepsiCo has been investing in its snack business by adapting its portfolio to changing consumer tastes, like its acquisition of healthy snack maker Bare Foods.
The company has effective net pricing to thank for some of its revenue growth. For example, sales volume for its North American beverage business dropped by 2% during the quarter that ended March 23, but
PepsiCo raised prices by 4%, resulting in 2% sales growth.
On Wednesday, the company reiterated its 2019 targets, including 4% organic revenue growth and earnings per share of $5.50.
Last quarter, PepsiCo missed Wall Street’s expectations for its 2019 outlook when it forecast declining earnings as it spends more on marketing and advertising to boost sales.
Shares hiked $3.06, or 2.5%, to $125.47
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