PepsiCo (PEP) Beats Expectations For Q2 2021

PepsiCo Inc. (NASDAQ:PEP) was officially founded in 1920, but its actual history began in 1893 when pharmacist Caleb Bradham developed a drink he called Brad’s Drink, which was later renamed Pepsi. The name Pepsi was motivated by the pepsin enzyme, which according to Bradham helped with the digestion process. Pepsi grew in popularity over the years and became a top soft drink brand in the world. In addition, the company added several other beverage and snack brands to diversify its portfolio. Today, it is a leading multinational food and beverage company with a market value hovering around $214 billion.

The New York-based beverage and snacks company recently announced its financial results for the second quarter above expectations. PepsiCo reported earnings of $1.70 per share for the three months ended June 12, significantly higher than $1.18 per share in the year-ago quarter. Excluding certain items, its adjusted earnings of $1.72 per share easily surpassed the consensus forecast of $1.53 per share.

Revenue for the quarter climbed 20.5 percent on a year-over-year basis to $19.22 billion, ahead of analysts’ average estimate of $17.96 billion. If we look at the performance of key segments, beverages revenue climbed nearly 24 percent to $6.16 billion, while Frito Lay revenue surged 6.5 percent to $4.55 billion. In comparison, Quaker Foods revenue declined 13.4 percent to $575 million.

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Speaking on the results, CEO Ramon Laguarta said in a statement, “We are pleased with our second quarter results as we delivered very strong double-digit net revenue and earnings per share growth. Given the strength of our results, we now expect our full year organic revenue to increase 6 percent and core constant currency earnings per share to increase 11 percent.”

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