PepsiCo (NASDAQ:PEP) on Tuesday reported its first-quarter adjusted earnings rose 10% as consumers stocked up on its drinks and snacks to prepare to spend more time at home.
However, the company pulled its fiscal 2020 outlook, citing the "the uncertainties associated with the magnitude and duration of the Covid-19 pandemic on our business."
The fizzy-drink giant also owns Frito-Lay, and reported fiscal first-quarter net income of $1.34 billion, or 96 cents per share, down from $1.41 billion, or $1.00 per share, a year earlier.
Excluding items, Pepsi earned $1.07 per share.
Net sales rose 7.7% to $13.88 billion. The company reported organic revenue growth of 7.9%.
Frito-Lay North America and Quaker Foods North America, which has struggled in recent quarters, both saw organic revenue grow by 7% during the quarter. Its North American drinks business reported organic revenue growth of 6%.
Experts on Wall Street anticipated earnings per share of $1.03 on revenue of $13.21 billion. However, it’s difficult to compare reported earnings to analyst estimates for Pepsi’s quarter, as the coronavirus pandemic has made it difficult to predict earnings.
Pepsi withdrew its fiscal 2020 forecast. In February, the company said it expected 4% organic revenue growth and 7% earnings per share growth after stripping out currency fluctuations in 2020.
However, the company is still expecting to repurchase $2 billion in shares and spend $5.5 billion on dividends in fiscal 2020, even as many other publicly traded companies suspend their buyback programs and slash their dividends to preserve cash.
Shares, well, popped $2.14, or 1.6%, to $136.60.
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