PepsiCo Inc. (PEP) - Get Report posted stronger-than-expected second quarter earnings Monday, but topped revenues forecasts as snack sales improved during the peak of lock-down orders triggered by the coronavirus pandemic.
PepsiCo said core earnings for the three months ending in June were pegged at $1.32 per share, down 14.3% from the same period last year but firmly ahead of the Street consensus forecast of $1.25 per share. Group revenues, PepsiCo said, fell 3% to $15.95 billion but again topped analysts' forecasts of a $15.5 billion tally.
PepsiCo, which had earlier this year scrapped its 2020 earnings guidance, which had called for 4% organic revenue growth and 7% core earnings growth, said 'the current environment "has remained volatile and much uncertainty remains about the duration and long-term implications of the pandemic."
"Encouragingly, as restrictions and closures eased and population mobility improved as the quarter progressed, we also saw an improvement in our business performance and channel mix dynamics," said CEO Ramon Laguarta. "As a result, we are not providing a financial outlook for fiscal year 2020 at this time."
"However, we continue to believe we have ample liquidity and flexibility to meet the needs of our business and return cash to shareholders," he added. "We remain focused on winning in the marketplace with our strong portfolio of brands in attractive categories, agile supply chain and flexible go-to-market systems, while also building on our competitive advantages, to emerge an even stronger company in the future.”
PepsiCo shares were marked 0.77% higher in early trading immediately following the earnings release to change hands at $135.68 each, a move that would leave the stock just below positive territory for the year.