PepsiCo (NASDAQ:PEP) reported second-quarter earnings per share (EPS) that surpassed analyst estimates, while revenue fell slightly short.
The soft beverage maker posted Q2 EPS of $2.28, topping the projected $2.16. Revenue for the quarter totaled $22.5 billion, compared to the consensus estimate of $22.66 billion.
Pepsi shares fell around 1.7% in premarket trading Thursday.
By segment, Frito-Lay North America reported revenue of $5.87 billion, a 0.5% year-over-year decrease, missing the estimate of $5.94 billion. Quaker Foods North America generated $561 million in revenue, an 18% decline year-over-year, falling short of the forecasted $588.2 million PepsiCo Beverages North America reported revenue of $6.81 billion, compared to $6.76 billion the previous year, and slightly below the estimate of $6.86 billion.
For the full fiscal year 2024, PepsiCo projects an EPS of $8.15, compared to the consensus of $8.13, and anticipates revenue of $94.31 billion, above the consensus estimate of $91.06 billion.
Notably, the company said it now expects approximately 4% organic revenue growth for the year, compared to the previous forecast of “at least 4%.” Analysts expected 3.91% growth.
“During the second quarter, our business delivered net revenue growth, strong gross and operating margin expansion and double-digit EPS growth, remaining agile despite facing difficult net revenue growth comparisons versus the prior year, subdued category performance within North America convenient foods and the impacts associated with certain product recalls at Quaker Foods North America,” said Chairman and CEO Ramon Laguarta.
“For the balance of the year, we will further elevate and accelerate our productivity initiatives and make disciplined commercial investments in the marketplace to stimulate growth.”