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published in Blogs
Jul 16, 2021
Pepsi (PEP, $155.25) crushes fiscal Q2 expectations

Pepsi (PEP, $155.25) crushes fiscal Q2 expectations

PepsiCo. posted its fiscal second quarter earnings that surpassed analysts’ expectations.

The beverage giant’s adjusted earnings for the quarter came in at $1.72, compared to $1.53 expected by analysts polled by Refinitiv.

Revenue increased more than +20% year-over-year to $19.22 billion , also exceeding analysts’ expectation of $17.96 billion.

Net sales climbed +20.5% year-over-year to $19.22 billion, vs. analysts’ expectations of $17.96 billion. Organic revenue (which excludes foreign currency impact, acquisitions and divestitures) rose 12.8%.

PepsiCo.’s North American beverage business generated an organic revenue growth of 21%, the highest of all of Pepsi’s divisions during the quarter. The Quaker Foods North America segment was the only business to report decreasing organic revenue (a -21% fall in the segment’s volume led to a -14% decrease in organic revenue ).

The company narrowed its projection for 2021 organic revenue growth from mid-single digits to 6%.

Pepsi now projects + 11% growth in constant currency earnings per share, higher than its prior forecast of high-single digit growth. The forecast implies core earnings per share of $6.20 for 2021. Analysts had forecast full-year earnings growth of 7.2%.

The company also expressed its plans to expand the duration and scope of its five-year productivity program. It expects to generate at least $1 billion in annual savings through 2026.

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