PepsiCo Q2 earnings: ‘we still have lots of opportunities to grow’

PepsiCo Inc (NASDAQ: PEP), on Thursday, reported better-than-expected results for its second financial quarter. Its shares are up more than 1.0% at writing.

PepsiCo shares up on raised outlook

Investors are cheering the raised guidance as well. The beverage giant now sees a 10% organic growth in its revenue this year on $7.47 a share of core per-share earnings.

In comparison, analysts were at $7.32 per share for its fiscal 2023. On CNBC’s “Squawk Box”, CFO Hugh Johnston said today:

The multinational improved its core gross margin by 132 basis points in its recently concluded quarter. PepsiCo shares are still down 5.0% versus their year-to-date high.

Notable figures in PepsiCo Q2 earnings report

• Net income printed at $2.74 billion versus the year-ago $1.42 billion
• Per-share earnings also materially increased from $1.03 to $1.99
• Adjusted EPS came in at $2.09 as per the earnings press release
• Revenue went up 10% on a year-over-year basis to $22.32 billion
• Consensus was $1.96 per share (adjusted) on $21.72 billion revenue

PepsiCo is committed to returning $6.7 billion to its shareholders in dividend payments this year and another $1.0 billion via stock repurchase. According to the Finance Chief:

PepsiCo revenues from individual segments

Other notable figures in the earnings report include a 14% increase in Frito-Lay North America.

Revenue at PepsiCo beverages North America and Quaker Foods North America came in up 10% and 1.0% respectively. CFO Johnston added today:

PepsiCo revealed an 8.0% hit to its revenue from Africa, Middle East, and South Asia in the recently concluded quarter. Wall Street currently has a consensus “overweight” rating on PepsiCo shares.