Sales for Frito-Lay North America climbed 2 per cent, while PepsiCo Americas Beverages sales edged up 1 per cent.
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Although the U.S. CSD market declined for the tenth consecutive year in 2014, the rate of decline fell last year, on increased customer spending on perishable products, amid an improving economic environment in the country, reflecting that there might be some fight left in the CSD category.
PepsiCo, Inc. NYSE:PEP (PepsiCo) is a global food and beverage company. Admittedly, price was a particularly strong contributor for the segment during the quarter (up 3%), and management noted newly introduced smaller package sizes drove this dynamic, leading us to maintain our forecast for more-balanced growth past this year.
Equities researchers at Stifel Nicolaus upped their target price on shares of PepsiCo (NYSE:PEP) from $108.00 to $110.00 in a research report issued on Friday, AnalystRatings.Net reports. The company is still a solid play in the food and beverage sector and the stock is now a few points from its yearly high. The 1 year high for the share price is 100.76 United States dollars while the 52 week low for the stock is 87.46 United States dollars.
The company raised its forecast for 2015 adjusted earnings per share growth to 8 percent on a constant currency basis, or about $5 per share, from 7 percent.
At the same time, the company’s core constant operating profit has also increased by 8% while the reported operating profit stayed even. However, PepsiCo also experienced a decrease in reported net revenue by 6%. The company plans to release its second quarter 2015 financial results subsequent the close of trading on the New York Stock Exchange on Tuesday, July 28.
Analysts on an average had expected earnings of $US1.24 per share and revenue of $US15.80 billion, according to Thomson Reuters I/B/E/S. The company said it earned $1.98 billion, or $1.33 per share, for the three months ending June 13.
PepsiCo said it now expects its earnings to grow 8% this year, stripping out special items and currency impacts.
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PepsiCo maintained its streak of gross margin expansion in the latest quarter. Currency is now expected to hurt earnings per share by 11% and revenues by 9% (previously 10%) in 2015. Among the other American snacks businesses, organic volumes grew 3% in Latin America Foods segment versus flat in the previous quarter. She explained, “Our results also reflect our keen focus on innovation, brand building and marketplace execution”. The company remains on track to deliver its 5 year, $5 billion productivity savings through 2019.
