PepsiCo continues to excel in the consumer staples industry, delivering another exceptional quarter with guidance for strong growth throughout the year. Increasing its outperformance among its peers, the beverage and snack maker has set the bar high.
In the three months ending in June, PepsiCo reported earnings per share of $1.99 on revenue of $22.3 billion. This exceeded expectations from analysts surveyed by FactSet, who had projected per-share earnings of $1.96 and revenue of $21.7 billion.
What’s even more impressive is the company’s outlook. PepsiCo now anticipates full-year organic revenue growth of 10%, higher than its previous forecast of 8% in April. Similarly, earnings per share are expected to rise by 12%, surpassing the guidance of 9% from April.
As a result, PepsiCo’s stock surged by 2.3% in U.S. premarket trading on Thursday. Although the stock had only gained 1.4% this year as of Wednesday’s close, it has consistently outperformed its peers. In comparison, the S&P 500 Consumer Staples Sector Index has experienced a decline of 0.7% in 2023.
Ramon Laguarta, Chairman and CEO of PepsiCo, expressed his satisfaction with the company’s performance in the second quarter, stating, “We are very pleased with our performance for the second quarter as our business momentum remains strong.” He also highlighted their future focus on productivity initiatives to further support investments in innovation, brand building, digitalization, and sustainability.
One notable contributor to PepsiCo’s standout quarter is its Frito-Lay North America business, which includes popular brands such as Lay’s, Doritos, and Cheetos. This segment experienced a growth of 14% in both revenue and profit. Additionally, PepsiCo’s Latin America division also exceeded expectations, with revenue increasing by 18% and profit surging by 41% during the quarter.
All in all, PepsiCo’s impressive performance and raised guidance offer investors something worth savoring.
