PepsiCo Q2 Profit Down, Yet Tops Estimates; Maintains FY25 View; Stock Up In Pre-market

PepsiCo

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(RTTNews) - Food and beverage giant PepsiCo, Inc. (PEP) reported Thursday a sharp drop in second-quarter profit, hurt by an impairment charge, despite slightly higher revenues. Further, the company maintained its fiscal 2025 outlook, expecting stable core earnings and organic growth.

In the pre-market activity on the Nasdaq, PepsiCo shares were gaining around 2.3 percent to trade at $138.40.

Chairman and CEO Ramon Laguarta said, "for fiscal 2025, we remain confident in our ability to deliver low-single-digit organic revenue growth with core constant currency EPS to be approximately even with the prior year. Our core USD EPS outlook has improved versus our previous expectations as foreign exchange headwinds have moderated, due to the weakening of the U.S. dollar."

In its second quarter, net income attributable to the company fell to $1.26 billion from last year's $3.08 billion. Earnings per share declined 59 percent to $0.92 from $2.23 a year ago.

Core earnings were $2.91 billion or $2.12 per share, compared to prior year's $3.14 billion or $2.28 per share.

The Wall Street analysts on average expected the company to report earnings of $2.03 per share. Analysts' estimates typically exclude special items.

Selling, general and administrative expenses increased slightly from last year, and the company recorded impairment of intangible assets of $1.86 billion in the latest quarter.

Net revenue edged up 1 percent to $22.73 billion from $22.50 billion a year ago. Organic revenue grew 2.1 percent. The Street was looking for net revenues of $22.30 billion.

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