PepsiCo earnings: $1.61 a share, vs EPS of $1.52 expected
Lauren Hirsch
CNBC
July 10, 2018
Pepsi's North American beverage has been lagging while its Frito Lay snacks business has been performing well.CEO Indra Nooyi last quarter said Pepsi will increase advertising spending to revive its beverage business.Pepsi in May acquired baked fruit and vegetable company Bare Foods.PepsiCo PEP reported second-quarter earnings on Tuesday that beat analysts' expectations, boosted by the continued strength of its Frito Lay snack business.
Here’s how the company did compared with what Wall Street expected:
Earnings: $1.61 per share vs. $1.52 per share forecast by Thomson Reuters Revenue: $16.09billion vs. $16.04 billion forecast by Thomson ReutersPepsi's North American beverage business, which includes brands like Gatorade and its namesake cola, has been struggling to contend with increased competition from upstart brands and changing consumer tastes. CEO Indra Nooyi last quarter placed the blame for slowing sales on Coca-Cola KO 's increased spending on advertising, though she did not address the Atlanta-based beverage giant by name. She said Pepsi would respond by increasing spending on its trademark cola brand and improve brand communications.
Pepsi's Frito-Lay snack business, meantime, continues to thrive . Pepsi in May announced its acquisition of baked fruit and vegetable company Bare Foods as part of its efforts to keep its business on trend with today's snackers. Investors will likely expect an update on how that acquisition fits within its broader strategy.
Still, the U.S. remains challenging for all consumer giants, where pressured retailers and rising costs are squeezing margins. Pepsi has seen some of its strongest performances internationally and last quarter reported revenue growth in Latin America and Europe Sub-Saharan Africa of 14 percent and 15 percent, respectively.
finance.yahoo.com
Not that my salty snack food purchases make any real difference to PEP's bottom line, but PEP does make all my favorite snack and dip chips. |
