Soft drink maker PepsiCo (PEP) has reported mixed financial results for this year’s second quarter.
The company behind Pepsi and Mountain Dew reported earnings per share (EPS) of $2.28 U.S. versus $2.16 U.S. that had been forecast on Wall Street.
Revenue in the April through June quarter came in at $22.50 billion U.S. compared to $22.57 billion U.S. that was expected among analysts. Sales were up 1% from a year earlier.
PepsiCo blamed the revenue miss on declining demand in North America for its drinks and snacks that also include Gatorade and Lay’s potato chips.
Management said higher prices for its products caused by inflation continue to alienate some consumers. PepsiCo's prices rose an average of 5% during the second quarter.
The company also continues to deal with fallout from product recalls at its Quaker Foods division, which makes oatmeal.
Executives narrowed their revenue outlook for the entire year, saying they now expect 4% organic revenue growth and 8% earnings per share growth for all of 2024.
PepsiCo’s stock declined 2% in premarket trading on news of the company’s latest financial results.
Prior to today (July 11), PepsiCo’s stock had declined 11% over the past year to trade at $163.59 U.S. per share.
