UPDATE: PepsiCo Posts Upbeat Q2 Earnings, Shares Rise
Shares of PepsiCo (NYSE: PEP) gained more than 2% in pre-market trading after the company reported better-than-expected second-quarter results and raised its full-year earnings outlook.
The Purchase, New York-based company posted a quarterly profit of $1.978 billion, or $1.29 per share, versus a year-ago profit of $2.010 billion, or $1.28 per share. Its adjusted earnings came in at $1.32 per share.
Its revenue gained 0.5% to $16.894 billion, while organic revenue rose 3.6%. However, analysts were expecting earnings of $1.23 per share on revenue of $16.8 billion.
PepsiCo's net revenue climbed 2% for global snacks, and fell 1% for global beverages. Its developing and emerging market net revenue slipped 1% in the quarter.
Net revenue in the PepsiCo Americas Foods division rose 1%, while revenue in Frito-Lay North America climbed 2% in the quarter. Latin America Foods net revenue was even compared to the year-ago quarter.
PepsiCo's carbonated soft drink volumes slipped 2% in North America, while non-carbonated beverage volume gained 1%.
Chairman and CEO Indra Nooyi said, "Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results."
Nooyi added, "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." PepsiCo earlier expected FY14 core constant currency EPS growth of 7%.
It now projects organic revenue to grow mid-single digits compared to 2013. PepsiCo is targeting over $10 billion in cash flow in 2014.
PepsiCo's shares gained 2.15% to $91.09 in pre-market trading.
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