PepsiCo Earnings Top Views -- Update

By Imani Moise Features Dow Jones Newswires

PepsiCo Inc. said its second-quarter sales and earnings rose as the beverage and snack maker continued to offset weak demand in North America with higher prices.

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The company also lifted its adjusted earnings-per-share outlook for the year to $5.13 from $5.09, as it anticipates lighter headwinds from foreign-exchange effects.

The Purchase, N.Y., maker of Frito-Lay snacks, Gatorade and its namesake cola has been hurt has consumers spend more time at the perimeter of the store browsing through produce and fresh meats and less time in the center aisles where the company's signature snacks and drinks are found.

Still, the company has been able to achieve sales growth by raising the prices for its products. Sales in its Frito-Lay and North American beverage units increased 3% and 2%, respectively, on flat volume growth. Sales slipped 1% in its Quaker Foods business, but volume held steady.

PepsiCo's beverage volumes declined 2% in the latest quarter while total food and snacks volume grew 2%, driven by gains in foreign markets.

In all for the quarter ended in June, PepsiCo posted earnings of $2.11 billion, compared with $2.01 billion a year ago. Adjusted earnings per share of $1.50 handily topped the consensus estimate of $1.40 as the sale of PepsiCo's minority stake in Britvic PLC, the company that produces and sells Pepsi in the U.K., added 6 cents to its bottom line.

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Revenue also beat views, jumping 2% to $15.71 billion compared with estimates of $15.6 billion.

Shares, which have climbed more than 9% so far this year, edged up 0.5% to $114.79 during premarket trading Tuesday.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

July 11, 2017 08:42 ET (12:42 GMT)