PepsiCo Tops Consensus in Q2, Reaffirms FY2022 Outlook

Tiger Newspress2022-07-12
  • PepsiCopress release(NASDAQ:PEP): Q2 Non-GAAP EPS of $1.86beats by $0.12.
  • Revenue of $20.23B (+5.3% Y/Y)beats by $720M.

PepsiCo shares rose nearly 1% in premarket trading.

PepsiCo, Inc. (NASDAQ: PEP) today reported results for the second quarter 2022.

“We are pleased with our results for the second quarter as our business momentum continued despite ongoing macroeconomic and geopolitical volatility and higher levels of inflation across our markets,” said Chairman and CEO Ramon Laguarta.

Laguarta continued, “Our results are indicative of our highly dedicated employees, the strength and resilience of our categories, agile supply chain and go-to-market systems and strong marketplace execution. Our performance also gives us confidence that our investments to become an even Faster, even Stronger, and even Better organization by winning with pep+ are working. Given our year-to-date performance, we now expect our full-year organic revenue to increase 10 percent (previously 8 percent) and we continue to expect core constant currency earnings per share to increase 8 percent.”

Summary Second-Quarter 2022 Performance

Guidance and Outlook

The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.

The Company now expects to deliver 10 percent organic revenue growth (versus our previous guidance of 8 percent) for fiscal year 2022.

Consistent with its previous guidance for 2022, the Company continues to expect:

• An 8 percent increase in core constant currency EPS;

• A core annual effective tax rate of 20 percent; and

• Total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.2 billion and share repurchases of $1.5 billion.

In addition, the Company continues to expect a 2-percentage-point foreign exchange translation headwind to impact reported net revenue and core EPS growth based on current market consensus rates.

This assumption and the guidance above imply 2022 core EPS of $6.63, a 6 percent increase compared to 2021 core EPS of $6.26.

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Comments

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    2022-07-13
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