PepsiCo raises forecast after earnings crush estimates, fueled by returning restaurant demand

Business

In this article

Bottles of PepsiCo Inc. brand Pepsi soda for sale at a grocery store in Bagdad, Kentucky, U.S., on Friday, April 9, 2021.
Luke Sharrett | Bloomberg | Getty Images

PepsiCo on Tuesday reported that its quarterly revenue rose more than 20% as restaurant demand for its drinks returned, fueling an earnings beat.

The company also raised its outlook for its full-year adjusted earnings per share growth.

Shares of the company rose more than 1% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.72 adjusted vs. $1.53 expected
  • Revenue: $19.22 billion vs. $17.96 billion expected

Pepsi reported fiscal second-quarter net income of $2.36 billion, or $1.70 per share, up from $1.65 billion, or $1.18 per share, a year earlier.

Excluding items, the company earned $1.72 per share, beating the $1.53 per share expected by analysts surveyed by Refinitiv.

Net sales surged 20.5% to $19.22 billion, topping expectations of $17.96 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, rose 12.8%.

On the heels of such a strong quarter, the company said that it now expects constant currency earnings per share growth of 11%, up from its prior forecast of high-single digit growth. Analysts were expecting full-year earnings growth of 7.2%. Pepsi also narrowed its forecast for 2021 organic revenue growth from mid-single digits to 6%.

This is breaking news. Please check back for updates.

Articles You May Like

Top Wall Street analysts recommend these dividend stocks for higher returns
Credit card debt set to hit record levels as consumer holiday spending rises
Trump’s 25% tariff could be an existential threat to Canada’s recovering auto industry
Corporate Transparency Act Filing Requirements Reinstated: Act Now
10-year Treasury yield back above 4.6% after mixed jobless claims data

Leave a Reply

Your email address will not be published. Required fields are marked *