PepsiCo's Profit Boosted By Plano's Frito-Lay
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PURCHASE, N.Y. (CBSDFW.COM/AP) - PepsiCo's second-quarter profit topped Wall Street's expectations as it slashed costs and sold more of its Frito-Lay snacks.
The food and beverage company lifted its full-year earnings outlook and shares gained more than 2 percent in premarket trading Thursday.
The company said revenue from its Frito-Lay North America unit rose on stronger sales volume and pricing. Frito-Lay is based out of Plano. The North American beverage unit, which includes Diet Pepsi, Gatorade and other drinks, also saw revenue tick up, as pricing offset a dip in volume.
PepsiCo Inc., like many other packaged food companies including rival Coca-Cola Co., has been slashing costs as it faces weaker growth in saturated markets such as the U.S. and economic volatility overseas. The company is also focusing on newer products that are positioned as more premium and fetch higher prices.
For the period ended June 11, the company earned $2.01 billion, or $1.38 per share. A year earlier the Purchase, New York-based company earned $1.98 billion, or $1.33 per share.
Earnings, adjusted for non-recurring gains, were $1.35 per share. That beat the $1.28 per share average of analysts surveyed by Zacks Investment Research expected.
Revenue declined to $15.4 billion from $15.92 billion, hindered by a stronger dollar and the deconsolidation of its Venezuelan operations. Analysts polled by Zacks expected $15.4 billion in revenue.
Citing its year-to-date performance, PepsiCo Inc. now anticipates full-year earnings of $4.71 per share. Its prior guidance was for earnings of $4.66 per share. Analysts surveyed by FactSet predict earnings of $4.73 per share.
Its shares rose $1.93, or 1.8 percent, to $107.85 in premarket trading less than two hours ahead of the market opening.
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