PepsiCo (NASDAQ:PEP) reported its quarterly earnings results on Tuesday, amassing a profit and sales that beat expectations, yet PEP stock took a step back.
The Purchase, Harrison, New York-based soft drink maker announced that for its second quarter of its fiscal 2019, it brought in earnings of $1.54 per share on an adjusted basis. Analysts were calling for the business to earn about $1.50 per share on an adjusted basis, according to data compiled by Refinitiv.
PepsiCo’s revenue for the period tallied up to $16.449 billion, which was good for a 2.2% gain when compared to the year-ago amount. The figure was also better than the $16.426 billion that the Wall Street consensus estimate predicted, according to Refinitiv.
Additionally, organic revenue increased 4.5% year-over-year in the three-month period, topping the 4.4% growth that analysts called for. PepsiCo benefited from non-soda soft drinks such as Mtn Dew Game Fuel, as well as the sparkling water Bubly, which CEO Ramon Laguarta predicts will be one of the company’s “next billion-dollar brands.”
For its fiscal 2019, the business now sees its organic revenue to surge by 4%, while its adjusted earnings per share are slated to decline by 1% on a year-to-year basis after assuming constant foreign currency exchange rates.
Expect Bubly to be released in cans of different sizes moving forward, per Laguarta.
PEP stock is down about 1.1% on Tuesday.
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