The PepsiCo Q2 F2017 earnings report was released before opening bell this morning. PepsiCo posted adjusted earnings per share of $1.50 on $15.7 billion in sales, compared to the consensus estimates of $1.40 per share on $15.6 billion in revenue. Income rose to $2.11 billion from $2.01 billion in the same quarter a year ago.
PepsiCo Q2 F2017 earnings
Net earnings rose to $1.46 per share, representing a 6% increase year over year. The company said gains from the Britvic deal boosted its earnings by 6 cents per share on both a reported and adjusted basis.
The beverage and snack maker said higher prices offset weak demand in North America. PepsiCo’s Frito Lay North America division posted a 3% increase in GAAP revenue, while revenue for the Quaker Foods North America division fell 1% year over year. GAAP revenue in the North America Beverages division grew 2% year over year, while sales in the Latin America division rose 6% year over year. GAAP sales in the Europe Sub-Saharan Africa division grew 6% year over year, and revenue in the Asia, Middle East and North Africa division tumbled 8% year over year.
PepsiCo boosts earnings guidance
The PepsiCo Q2 F2017 earnings report included updated guidance this morning. The company said it still expects at least a 3% increase in organic revenue for the full year. The company expects a negative impact of about 2 percentage points from currency exchange. It also notes that fiscal 2017’s results will be up against 2016’s results for comparison, but 2016 had an extra week during the reporting period.
PepsiCo said it expects adjusted earnings of $5.13 per share, compared to last year’s core earnings of $4.85 per share. It looks for an 8% increase off that amount in core constant earnings per share. The company also plans to reinvest the gains from the Britvac deal “in the balance of the year.”
Following the PepsiCo Q2 2017 earnings release, the company’s stock ticked higher by as much as 0.45% to $114.78.
