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.
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.