PepsiCo raises annual guidance after topping FQ2 estimates; shares gain

PepsiCo (NASDAQ:) shares moved 1.7% higher in pre-open Thursday after the company raised its full-year forecast following the FQ2 outperformance.

PepsiCo reported of $2.09 on revenue of $22.32 billion for its second quarter, above Street expectations for earnings of $1.96 per share on revenue of $21.72B. Net revenue rose 10% year-over-year while organic revenue surged as much as 13%, easily ahead of the expected 9.8% increase.

“We are very pleased with our performance for the second quarter as our business momentum remains strong,” CEO Ramon Laguarta said in a press release.

“Our strong performance and the progress we are making on our strategic priorities give us confidence that the investments we are making to become an even Faster, even Stronger, and even Better organization by Winning with pep+ are working. Moving forward, we will look to elevate our focus on productivity initiatives to further support investments in innovation, brand building, digitalization, and sustainability to win in the marketplace and fortify our businesses for the long-term.”

The company now sees FY23 EPS at $7.47, up from the prior $7.27 and consensus of $7.31. Full-year organic revenue growth is now expected at 10%, up from the prior 8% and consensus of 8.1%.