PepsiCo Inc.’s stock (PEP, -0.44%) saw a 1.8% increase in premarket trade on Thursday, following the company’s impressive performance in the second quarter and an upward revision of its guidance.
Financial Highlights
For the quarter, PepsiCo reported net income of $2.748 billion, or $1.99 per share, representing a significant increase from the $1.429 billion, or $1.03 per share, reported in the same period last year. Adjusted per-share earnings came in at $2.09, surpassing the FactSet consensus estimate of $1.96.
The company’s revenue for the quarter rose to $22.322 billion, compared to $20.225 billion in the previous year, exceeding the FactSet consensus estimate of $21.729 billion.
Revised Outlook
PepsiCo now projects a 10% organic revenue growth for fiscal year 2023, up from the previous estimate of 8%. Similarly, the company expects its core constant currency EPS (Earnings Per Share) to rise by 12%, an increase compared to the prior guidance for a 9% rise.
The revised core EPS estimate stands at $7.47, up from the previous $7.27. FactSet analysts are slightly more conservative, with an estimate of $7.32.
Market Performance
Year-to-date, PepsiCo’s stock has gained 1.4% up until the close of Wednesday’s trading session, while the S&P 500 has experienced a 16% increase.
PepsiCo’s robust second-quarter results and improved guidance highlight the company’s strong position in the market and its commitment to delivering value to its shareholders.