PepsiCo Q1 Profit Tops Expectations, Shares Rise

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rose more than 2 percent in pre-market trading after the company reported upbeat results for the second quarter and lifted its earnings outlook for the year. PepsiCo now projects adjusted earnings growth of 8 percent for 2015, versus earlier forecast for 7 percent growth. It also projects mid-single-digit organic revenue growth for the year. The Purchase, New York-based company posted quarterly net income of $1.98 billion, or $1.33 per share, compared to $1.98 billion, or $1.29 per share, in the year-ago period. Excluding items, PepsiCo earned $1.32 per share. Its total revenue slipped 5.7 percent to $15.92 billion, while organic revenue surged 5.1 percent. Analysts were expecting earnings of $1.24 per share on revenue of $15.8 billion. The average estimate among 48 Estimize users was for earnings of $1.25 per share and revenue of $15.91 billion. Developing and emerging market organic revenue surged 11 percent during the quarter. Its gross margin widened to 55 percent from 54 percent. "PepsiCo achieved strong financial performance in the second quarter. We delivered mid-single digit organic revenue growth, strong gross margin expansion and double-digit core constant currency EPS growth. Based on our year-to-date results and positive momentum in the businesses, we are increasing our full-year core constant currency EPS growth target to 8 percent," said Chairman and CEO Indra Nooyi. PepsiCo shares gained 2.40 percent to $97.90 in pre-market trading.