PepsiCo, Inc. (NASDAQ: PEP)
PepsiCo, Inc. announced its second-quarter profit and revenue that were ahead of analyst estimates.
The results received a huge boost from strong sales of Quaker oatmeal and Frito-Lay chips. Shares of the Doritos maker rose $3.39, or 3.15% in early trading, after closing at $107.76 on Monday.
PEP Earnings & Outlook
The company posted net earnings of $1.82 billion, or $1.28 per share, compared to $2.11 billion, or $1.46 per share, in the second quarter of last year.
Adjusted for one-time items, earnings per share came in at $1.61, up 8% and ahead of analyst model of $1.53.
Revenue was $16.09 billion, an increase of 2%, and above analyst estimate of $16.06 billion. Frito-Lay snacks generated a revenue of $3.84 billion, up 4% and ahead of Thompson Reuters estimate of $3.79 billion.
Looking ahead, PepsiCo expects its full-year organic revenue growth to be at least consistent with the 2017 growth rate of 2.3%.
It is also targeting core per-share earnings of $5.70, a 9% increase compared to 2017.
PepsiCo CEO Comments
The chief executive officer of PepsiCo, Mrs. Indra Nooyi offered the following remarks on the performance; “We are pleased with our results for the second quarter and we remain on track to achieve the financial targets we set out at the beginning of the year. The majority of our businesses performed very well, particularly our international divisions propelled by continued growth in developing and emerging markets, and our North America Beverages sector posted sequential net revenue and operating profit performance improvement”
PepsiCo, Inc. Company Profile
PepsiCo, manufactures, markets, distributes, and sells food, beverages, snacks, and foods. The company has a collection of brands that include Pepsi-Cola, Frito-Lay, Tropicana, Gatorade, and Quaker.
Its segments of operation are: Quaker Foods North America; Frito-Lay North America; Latin America; Europe Sub-Saharan Africa; North America Beverages; and Asia, Middle East, and North Africa.
The Quaker Foods North America segment provides rice, pasta, and cereals under brands, such as Aunt Jemima, Rice-A-Roni, Quaker, Cap’n Crunch, Quaker Chewy, and Life.
The Frito-Lay North America segment markets, distributes, and sells snack foods under the Ruffles, Santitas, Fritos, Lay’s, Tostitos, Doritos, and Cheetos brands.
The Latin America segment consists of snack, food, and beverage businesses in Latin America region. The Europe Sub-Saharan Africa segment offers snack, beverage, and food products in Sub-Saharan Africa and Europe regions.
The North America Beverages division covers fountain syrups, beverage concentrates, and finished products under a variety of brands, such as Mountain Dew, Diet Mountain Dew, Pepsi, Sierra Mist, Gatorade, Diet Pepsi, Mug, Aquafina, and Tropicana Pure Premium.
The Asia, Middle East, and North Africa division comprises of snack food products under the Doritos, Crunchy, Chipsy, Lay’s, Cheetos, and Kurkure brands.
The competitors of the company include The Kraft Heinz Company, Red Bull GmbH, Dr Pepper Snapple Group, The Coca-Cola Company, Inc., Kellogg Company, Nestle S.A., Mondelez International, Inc., Snyder’s-Lance, Inc., Monster Beverage Corporation.
PepsiCo, Inc. was founded in 1965 by Herman W. Lay and Donald M. Kendall, Sr. The headquarters of the company are located in Purchase, New York. –Reuters