PepsiCo beats earnings estimates, raises full-year outlook

PepsiCo on Thursday reported quarterly earnings and revenue that topped analysts’ expectations and raised its full-year outlook.

Shares of the company rose more than 2% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $2.09 adjusted vs. $1.96 expected
• Revenue: $22.32 billion vs. $21.73 billion expected

Pepsi reported second-quarter net income attributable to the company of $2.75 billion, or $1.99 per share, up from $1.43 billion, or $1.03 per share, a year earlier.

Excluding items, the beverage giant earned $2.09 per share.

Net sales rose 10.4% to $22.32 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, rose 13% in the quarter.

But the company’s volume fell as higher prices for its snacks and drinks hurt demand. Volume, which excludes pricing and currency fluctuations, dropped 3% for Pepsi’s food divisions and 1% for its beverages.

Quaker Foods North America’s volume shrank 5%, and Pepsi’s North American beverage unit reported volume fell 4.5% in the quarter. However, Frito-Lay North America was one bright spot, reporting 1% volume growth.

For 2023, Pepsi now expects 10% organic revenue growth, up from its prior forecast of 8%. The company also hiked its core constant currency earnings outlook to 12% growth from its previous expectation of 9%.