Pepsico Earnings: Here’s Why Investors are Excited Now

Pepsico, Inc. (NYSE:PEP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.17%.

Pepsico, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.96% to $1.31 in the quarter versus EPS of $1.12 in the year-earlier quarter.

Revenue: Rose 2.12% to $16.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pepsico, Inc. reported adjusted EPS income of $1.31 per share. By that measure, the company beat the mean analyst estimate of $1.19. It beat the average revenue estimate of $16.79 billion.

Quoting Management: “We’re pleased with our performance in the second quarter and for the first half of 2013. PepsiCo delivered another quarter of mid-single-digit organic revenue growth, driven by our balanced food and beverage product portfolio and global geographic footprint. We continue to invest in advertising and marketing, innovation, and other marketplace initiatives to sustain our organic revenue growth and we are driving a robust productivity agenda that serves as a funding source for these investments,” said Chairman and CEO Indra Nooyi.

Key Stats (on next page)…

Revenue increased 33.59% from $12.58 billion in the previous quarter. EPS increased 70.13% from $0.77 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.27 and has not changed. For the current year, the average estimate is a profit of $4.4, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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