Beverage and snacks maker, PepsiCo Inc. (NYSE: PEP) reported fiscal second quarter earnings on Wednesday that topped analystsâ€™ estimations. The company also maintained its outlook on full-year profits and revenues.
The fact that PepsiCo is confident of maintaining sales growth is a sign of its strength as many consumer products companies have been struggling with the falling demand amid global economic slowdown.
While speaking to Reuters over PepsiCo results, market analyst Mark Swartzberg said, â€śIn a consumer group seeing negative second-half revisions, we consider this (PepsiCo results) as positive.â€ť
Following the results, shares of PepsiCo jumped about 1 % in the morning trade.
The company said that its second-quarter net income stood at $1.49 billion, or 94 cents per share, down from $1.89 billion, or $1.17 per share, in the corresponding period of last year.
After excluding onetime expenses, Companyâ€™s earnings were $1.12 per share, surpassing analysts’ average estimate. Analysts polled by Thomson Reuters estimated earnings (excluding expenses) at $1.09, a share.
For the period, revenue narrowed 2 percent to $16.5 billion, in line with Wall Street estimates.
The dip was partially due to a loss of revenue in China and Mexico after the company sold its bottling operations in those countries to franchisees.
Furthermore, an unfavorable exchange rate market, which reduced the value of oversees revenues when converted into dollars, also hurt its consolidated revenues.
In the period, companyâ€™s sales volume leaped 6 percent in the snack business and 1 percent in the beverage business.
In the Americas, volume rose 5 percent in snacks but fell 1 percent in beverages. In Europe, volume increased 1 percent in snacks but contracted 2 percent in beverages.