Shares of PepsiCo Inc. $(PEP)$ fell 2% in premarket trading Thursday, after the beverage and snack giant reported second-quarter profit that beat expectations but revenue that came up shy, citing weakness in North America convenient foods and the impacts of product recalls at Quaker Foods.
Net income for the quarter to June 15 rose to $3.03 billion, or $2.23 a share, from $2.75 billion, or $1.99 a share, in the same period a year ago. Excluding nonrecurring items, core earnings per share of $2.23 beat the FactSet of $2.16.
Net revenue grew 0.8% to $22.501 billion, below the FactSet consensus of $22.59 billion, as organic volume declined 3% while effective net pricing of increased 5%.
In North America, Frito Lays sales slipped 0.5%, beverages sales edged up 0.8% and Quaker Foods sales fell 18%. Looking ahead, the company revised its guidance for organic revenue growth to "approximately" 4% from "at least" 4% and reiterated its guidance for core constant-currency EPS growth of at least 8%.
The stock has slipped 3.7% year to date through Wednesday, while shares of beverage rival Coca-Cola Co. $(KO)$ have gained 6.6% and the S&P 500 has advanced 18.1%.
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