PepsiCo. Inc (PEP - Get Report) posted stronger-than-expected second quarter earnings Tuesday, and maintained its full-year sales growth forecast, as snacks sales from its Frito-Lay division continue to drive top-line growth.
PepsiCo said adjusted earnings for the three months ending on June 15 came in at $1.54 per share, down 4.34% from the same period last year but 2 cents ahead of the Street consensus forecast. Group revenues, PepsiCo said, rose 2.23% to $16.449 million, largely in-line with analysts forecasts.
Looking into 2019, PepsiCo said it still sees organic revenue growth of around 4%, after posting a 4.5% tally over the second quarter, and core earnings per share of around $5.50.
"We are pleased with our results for the second quarter," said CEO Ramon Laguarta. "While adverse foreign exchange translation negatively impacted our reported net revenue performance, our organic revenue growth was 4.5% in the quarter."
"We are also pleased with the progress on our priorities to make PepsiCo a faster, stronger and better company by building new capabilities, strengthening our brands, adding capacity to grow and transforming our culture," he added. "Our performance for the first half and the progress we are making on our strategic priorities give us increased confidence in achieving the 2019 financial targets we communicated earlier this year."
PepsiCo shares were marked 0.2% higher following the earnings release to change hands at $132.56 each, a move that extendss the stock's year-to-date gain to around 20.5%, more than double the 9.82% gain for drinks rival Coca-Cola Co. (KO - Get Report) .
Frito-Lay revenues, which along with the company's other snacks businesses, comprise more than half of the group's collective top line, rose 4.5% to $4.01 billion, while north American beverage sales rose 2.5% to $5.322 billion.