PepsiCo rallies after strong organic sales power double earnings beat
Joe Raedle/Getty Images News
PepsiCo (NASDAQ:PEP) traded higher in premarket trading on Thursday after topping Q2 earnings estimates and posting solid guidance for the full year.
Organic sales rose 13.% in Q2, led by a 19% increase in Latin America and 18% rise in the Africa, Middle East and South Asia region. Organic sales were 10% higher for PepsiCo Beverages North America and 14% higher for Frito-Lay North America. The Quaker Foods North America segment lagged with an organic sales growth of just 2%. The organic sales growth mark of +13% topped the consensus estimate of +10%.
Volume was 3% lower for the convenient food business during the quarter and down 1% for beverages. Pricing helping the company offset higher input costs.
Core EPS fell 17% year-over-year to $2.09 per share, but was comfortably ahead of the consensus estimate of $1.97.
Looking ahead, PepsiCo (PEP) now expects full-year organic revenue growth of 10% vs. 8% prior estimate and core constant currency EPS growth of 12% vs 9% prior. Core EPS of $7.47 is anticipated vs. $7.27 prior estimate and the consensus mark of $7.32.
Shares of PepsiCo (PEP) rose 2.17% premarket trading to $187.14 vs. the 52-week trading range of $160.98 to $196.88.
More on PepsiCo:

PepsiCo: Generating SPY's Gains Without The Volatility
More articles from Seeking Alpha analysts
Growth metrics on PepsiCo
Seeking Alpha's Quant Rating for PepsiCo