PepsiCo raises forecast after earnings crush estimates, fueled by returning restaurant demand

Business

In this article

Bottles of PepsiCo Inc. brand Pepsi soda for sale at a grocery store in Bagdad, Kentucky, U.S., on Friday, April 9, 2021.
Luke Sharrett | Bloomberg | Getty Images

PepsiCo on Tuesday reported that its quarterly revenue rose more than 20% as restaurant demand for its drinks returned, fueling an earnings beat.

The company also raised its outlook for its full-year adjusted earnings per share growth.

Shares of the company rose more than 1% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.72 adjusted vs. $1.53 expected
  • Revenue: $19.22 billion vs. $17.96 billion expected

Pepsi reported fiscal second-quarter net income of $2.36 billion, or $1.70 per share, up from $1.65 billion, or $1.18 per share, a year earlier.

Excluding items, the company earned $1.72 per share, beating the $1.53 per share expected by analysts surveyed by Refinitiv.

Net sales surged 20.5% to $19.22 billion, topping expectations of $17.96 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, rose 12.8%.

On the heels of such a strong quarter, the company said that it now expects constant currency earnings per share growth of 11%, up from its prior forecast of high-single digit growth. Analysts were expecting full-year earnings growth of 7.2%. Pepsi also narrowed its forecast for 2021 organic revenue growth from mid-single digits to 6%.

This is breaking news. Please check back for updates.