PepsiCo Pops on Upbeat Earnings Report

Investors pushed shares of PepsiCo (NYSE: PEP  ) higher today, after the soda and snack company reported better-than-expected earnings for its fiscal 2014 second quarter and increased EPS guidance.

For the period ended June 14, Pepsi posted a non-generally accepted accounting principles profit of $1.32 per share. This trounced analysts estimates for earnings per share of just $1.23 in the quarter. Revenue climbed 0.5% to $16.9 billion in the period, which was slightly ahead of Wall Street's estimates for quarterly revenue of $16.8 billion.

Source: The Motley Fool

Pepsi said the strong results reflect the growing power of its portfolio of products and brands. As a result, Pepsi's chief executive, Indra Nooyi, said in a statement, "Based on the strength of our year-to-date results and our outlook for the remainder of the year, we're increasing our full-year, core constant currency EPS growth target to eight percent." Management had previously targeted full-year EPS growth of 7%.

The soda and snack giant generated growth across each of its four business segments, with 3.6% organic revenue growth in the period. Additionally, organic revenue climbed 5% for global snacks and 2% for global beverages. Pepsi is now on track to return a total of $8.7 billion to shareholders this year through share repurchases and dividends.

In its closely watched North American beverage business, soda volume fell 2% while non-carbonated drinks rose 1%.

In its Frito-Lay North America division, PepsiCo said lower prices helped lift sales volume. Although the performance was muted, Chief Financial Officer Hugh Johnston noted in a phone interview with The Associated Pess that the unit is expected to benefit in the current quarter from the rollout of special flavors -- Cappuccino, Mango Salsa, Wasabi Ginger, and Bacon Mac & Cheese.

Shares of PepsiCo had moved higher by more than 2.5% as of 12:45 p.m.

-- Material from The Associated Press was used in this report.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3040919, ~/Articles/ArticleHandler.aspx, 12/19/2014 3:20:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement