Food and beverage giant PepsiCo (PEP) has raised its revenue guidance after beating analysts’
earnings estimates on both the top and bottom lines.
The company reported earnings per share (EPS) of $1.86 U.S. versus $1.74 U.S. that was
expected on Wall Street. Its revenue came in at $20.23 billion U.S. compared to $19.51 billion
U.S. that had been expected, according to Refinitiv data.
For all of this year, PepsiCo says it now expects organic revenue growth of 10%, up from its
previous forecast of 8%. This is the second consecutive quarter that the company has raised its
revenue forecast without updating its earnings expectations.
PepsiCo also reported second-quarter net income attributable to the company of $1.43 billion
U.S., or $1.03 U.S. per share, down from $2.36 billion U.S., or $1.70 U.S. a share in the year
earlier period.
The company said its margins shrank due to higher freight and commodity costs during the
quarter. PepsiCo also took a hit from the Russia-Ukraine war, reporting a $1.17 billion U.S.
charge related to the ongoing conflict. PepsiCo has paused all sales in Russia except for
essential items such as baby formula.
Frito-Lay North America reported organic revenue growth of 14% as sales of Cheetos and
Doritos chips increased in the quarter. The company’s North American beverage unit saw
organic revenue growth of 9%.
Quaker Foods was the only domestic segment to report volume growth for the quarter. Its
organic revenue climbed 18%, spurred by double-digit sales growth in rice, pasta, oatmeal, and
cookies.
Year to date, PepsiCo’s stock has declined 2% to change hands at $170.47 U.S. per share.
