Things are generally looking good for snacks-and-beverages giant PepsiCo
Second-quarter revenue shot up by 40% to $14.8 billion. That move was powered by the company's bottler acquisitions, which more than doubled sales in the Americas Beverages segment.
Reported earnings per share, however, fell 7% to $0.98, as higher interest and tax expenses, along with integration-related costs, all weighed on profitability. Excluding these and other factors, "core" EPS came in at $1.10, representing an 8% year-over-year gain. For the full year, management expects this metric to show growth in the 10%-12% range.
Companywide, snacks volume advanced 1% and beverages volume improved by 11%, with the latter driven by the bottling business. Excluding the bottler boost, beverage volume in the key North American market declined by 1%, which sorely lags the 2% growth that chief rival Coca-Cola
That said, the 1% volume slip was a 4.5-percentage-point improvement from the prior quarter. Moreover, the launch of Gatorade G Series drinks in retail channels such as Dick's Sporting Goods
Management had other good news to share. For one, the company's Doritos and Pepsi brands are featured choices in a $2 meal special currently offered by Yum! Brands'
And the future holds its own highlights. Following the launch of "real sugar" (versus high fructose corn syrup) sweetened beverages by Dr Pepper Snapple
PepsiCo shares sit at roughly the same level as when I described the stock as a decent long-term buy last month. Barring widespread multiple contraction that could come with a double-dip recession, my opinion today is unchanged. Cheers to something remaining the same in these manic times.