On July 24, PepsiCo
- Can you think of a better business model than selling snacks and beverages? The company portfolio remains strong; its international business and Frito-Lay division are cranking up the volume.
- Profits rose 16% after benefiting from a 220 basis point decrease in the quarterly tax rate.
- Given the strong performance thus far for the year, management upped guidance for 2007 to at least $3.35 per share.
- Over 1,000 Motley Fool CAPS players have weighed in with their take on PepsiCo, ranking the stock four stars out of five.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Sales |
$9,607.0 |
$8,714.0 |
10.2% |
Net Profit |
$1,557.0 |
$1,375.0 |
13.2% |
EPS |
$0.94 |
$0.81 |
16.0% |
Diluted Shares |
1,669.0 |
1,692.0 |
(1.4%) |
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
54.8% |
55.7% |
(0.9) |
Operating Margin |
20.4% |
20.7% |
(0.3) |
Net Margin |
16.2% |
15.8% |
0.4 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$1,862.0 |
$2,678.0 |
(30.5%) |
Accounts Rec. |
$4,669.0 |
$4,104.0 |
13.8% |
Inventory |
$2,510.0 |
$2,100.0 |
19.5% |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable* |
$6,870.0 |
$6,184.0 |
11.1% |
Long-Term Debt |
$3,261.0 |
$2,542.0 |
28.3% |
The balance sheet reflects the company's health.
Cash Flow Highlights
YTD 2007 |
YTD 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$2,018.0 |
$1,780.0 |
13.4% |
Capital Expenditures |
$743.0 |
$708.0 |
4.9% |
Free Cash Flow |
$1,275.0 |
$1,072.0 |
18.9% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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