Here are Wednesday’s top stories:
PepsiCo, Inc. (NYSE:PEP) reports that its refranchising activities in China and Mexico, along with volatility in foreign exchange, brought down revenues and offset rises in price, all leading to a sharp fall of 21 percent in net profit in the second quarter to $1.49 billion.
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TripAdvisor (NASDAQ:TRIP) sneezed (a second quarter revenue miss) and other online travel shares caught a cold, with Expedia, Inc. (NASDAQ:EXPE), Orbitz Worldwide, Inc. (NYSE:OWW), and priceline.com Incorporated (NASDAQ:PCLN) included in the group. The former’s conference call revealed that its international advertising rates dropped, and that attempts to raise the “traffic quality” also factored in. The firm reiterated guidance for “high teens” in this years revenue growth, but that falls short of a 21 percent consensus. Benchmark worries that aggressive search advertising expenditures by travel agencies might lower TripAdvisor’s search ad returns.
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