PepsiCo, Inc. (PEP) reported an increase in profit for the second quarter that also topped Wall Street estimates. Looking forward, the company increased its full-year organic revenue and core constant currency EPS guidance.
Second quarter earnings came in at $2.75 billion, or $1.99 per share compared with $1.43 billion, or $1.03 per share, a year ago. Core EPS was $2.09 compared to $1.86, previous year. Core constant currency EPS growth was 15%, for the quarter. Analysts on average had expected the company to earn $1.96 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
Second quarter revenue rose 10.3% to $22.32 billion from $20.23 billion last year. Analysts on average had estimated $21.73 billion in revenue. Organic revenue growth was 13.0%, for the quarter.
For fiscal year 2023, PepsiCo now expects to deliver 10 percent organic revenue growth, revised from prior guidance of 8 percent. The company now expects 12 percent core constant currency EPS growth, revised from prior outlook of 9 percent. This imply 2023 core EPS of $7.47, updated from prior guidance of $7.27. Analysts expect the company to report profit per share of $7.32.
For fiscal 2023, the company continues to expect: total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.7 billion and share repurchases of $1.0 billion.
Shares of PepsiCo are up 2% in pre-market trade on Thursday.
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