PepsiCo, Inc. (NYSE:PEP) Posts Fiscal Q2 Results Above Street Views

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Food-and-beverage company PepsiCo, Inc. (NYSE:PEP) reported fiscal Q2 results above analysts’ expectations Wednesday and boosted its forecast for 2014 core earnings-per-share growth.

Read More: Pepsi’s Second Quarter Earnings Above Street View

For the 12 weeks ended June 14, 2014, net income attributable to the company was $1.98 billion, or $1.29 per share, compared with $2.01 billion, or $1.28 per share, for the 12 weeks ended June 15, 2013. Affecting the per-share comparison, there was a 2.2% reduction in the number of shares outstanding. Core EPS, which excludes one-time items, was $1.32 in the latest quarter, up from $1.31 a year earlier and above the $1.23 per share consensus of analysts polled by Capital IQ.

Net revenue edged up 0.5% to $16.89 billion, slightly above analysts’ mean estimate of $16.8 billion. Foreign-exchange translation had a 3-percentage-point unfavorable impact on reported net revenue and structural change related to the 2013 refranchising of the company’s bottling operations in Vietnam had a slight negative impact in the quarter, the company said. Organic revenue was up 3.6%.

“Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results,” said Chairman and CEO Indra Nooyi.

“Based on the strength of our year-to-date results and our outlook for the remainder of the year, we’re increasing our full-year, core constant currency EPS growth target to 8%,” Nooyi added. Previously, the company had forecast 7% growth versus its fiscal 2013 core EPS of $4.37. Analysts were recently projecting growth of 3.7% to $4.53.

Excluding the impact of structural changes and foreign-exchange translation, the company expects organic revenue in 2014 to grow in the mid-single digits versus 2013, consistent with the company’s long-term target. Analysts were recently looking for 2014 revenue of $67.2 billion, up 1.2% from 2013. PEP was up 2% in recent pre-market trading after closing Tuesday at $89.17, closer to the high end of its 52-week range of $77.01 to $91.39.

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