Pepsico reports second-quarter earnings beat
PepsiCo (PEP) Thursday reported second-quarter profits that topped Wall Street forecasts and raised its full-year earnings outlook as the snack and beverage giant reported stronger North America sales.
Shares of the Purchase, N.Y.-based company nonetheless closed down 1.07% at $94.59, retreating from gains earlier in the trading day.
PepsiCo reported net earnings of $1.98 billion, marginally higher than the $1.978 billion registered for the same three-month period last year.
That translated to earnings per share of $1.32, up from $1.29 billion a share for last year's second quarter.
Financial analysts surveyed by Thomson Reuters had forecast earnings per share of $1.24 and net income of $1.84 billion.
The company reported revenue fell to $15.92 billion, down 6% from $16.89 billion last year, based in part on adverse foreign currency differences. However, the result still topped the $15.81 billion consensus forecast of Wall Street analysts.
Operating income from North America beverage and snack sales rose from same period last year, with more than $400 million in retail sails, the company reported.
PepsiCo raised its full-year earnings per share growth target to 8%, up from the 7% guidance in previous company forecasts.
Company Chairman and CEO Indra Nooyi said the financial results reflected "keen focus on innovation, brand building and marketplace execution."
"The macroeconomic environment around the world remains volatile and foreign exchange headwinds persist in many of our international markets," said Nooyi. "The steps we are taking to manage our businesses responsibly — such as taking pricing actions and optimizing our global sourcing — are clearly contributing to high-quality top and bottom-line year-to-date results and position us for the remainder of 2015."