PepsiCo earnings for the second quarter surpassed analysts’ expectations, on the back of strong sales in snacks and sparkling water.
The beverage and snack company reported adjusted earnings of $1.54 per share for the quarter, compared to $1.50 expected by Wall Street analysts.
Pepsi’s revenue of $16.449 billion also edged past analysts’ estimates of $16.426 billion.
Its Frito-Lay North America segment was the strongest performer in sales, reporting +5% organic revenue growth. Frito-Lay revenues along with the company's other snacks businesses comprise more than half of the group's total revenue.
Pepsi’s North American beverage business organic revenue grew by +2.2%. With increasing health consciousness among consumers, Pepsi has focused on releasing energy drinks like Mountain Dew Game Fuel and sparkling water brand Bubly.
Looking at the latest quarterly sales report, it seems that Pepsi's strategy to expand healthier options in snacks and beverages is paying off.
Looking ahead, the company expects full-year fiscal 2019 organic revenue to grow by +4%, and adjusted earnings per share (assuming constant foreign currency exchange rates) to decline by -1%.