https://www.cnn.com/2019/07/09/investing/premarket-stocks-trading/index.html
2019-07-09 11:21:00Z
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PepsiCo shares rose slightly Tuesday after the company's second-quarter earnings topped estimates, as healthier snacks and sparkling water helped fuel sales growth and offset a drag from foreign exchange.
Shares of the company jumped less than 1% in premarket trading. With a market value of $185.8 billion, its stock is up 20% so far this year. The stock of rival Coca-Cola, which has a market value $36 billion higher, has risen only 10% in the same time.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
The comeback of its North American beverage business continued during the second quarter, helped by its Starbucks coffee drinks and water business. Its organic revenue grew by 2.2%. As consumers drink less soda, Pepsi has turned to higher-growth beverage categories instead, releasing energy drinks like Mtn Dew Game Fuel and jumping in on the sparkling water trend with Bubly.
Frito-Lay North America was the strongest performer, reporting 5% organic revenue growth. The Cheetos maker credited sales growth in convenience and dollar stores for the unit's success. Pepsi has also been expanding its line-up of healthier options through brands like Bare, which makes baked fruit and vegetable snacks.
In its North American Quaker Foods business, its cereal and Aunt Jemima maple syrup returned to growth, giving the segment its strongest quarter of organic revenue in three years.
In addition to adding healthier snack and beverage options, Pepsi's strategy for sales growth has also focused on investing more in advertising and marketing.
The soda giant reported fiscal second-quarter net income of $2.04 billion, or $1.44 per share, up from $1.82 billion, or $1.28 per share, a year earlier.
Excluding restructuring and impairment charges, tax benefits and other special items, Pepsi earned $1.54 per share, topping the $1.50 per share expected by analysts surveyed by Refinitiv.
Net sales rose 2.2% to $16.44 billion, beating expectations of $16.43 billion. The company said that currency fluctuations negatively impacted its revenue during the quarter.
Overall second-quarter organic revenue was up 4.5%, topping the 4.4% growth expected.
"Our performance for the first half and the progress we are making on our strategic priorities give us increased confidence in achieving the 2019 financial targets we communicated earlier this year," CEO Ramon Laguarta said in a statement.
In fiscal 2019, the company expects organic revenue to grow by 4% and adjusted earnings per share, assuming constant foreign currency exchange rates, to decline by 1%.
PepsiCo shares rose slightly Tuesday after the company's second-quarter earnings topped estimates, as healthier snacks and sparkling water helped fuel sales growth and offset a drag from foreign exchange.
Shares of the company rose less than 1% in premarket trading.
"Our performance for the first half and the progress we are making on our strategic priorities give us increased confidence in achieving the 2019 financial targets we communicated earlier this year," CEO Ramon Laguarta said in a statement.
In fiscal 2019, the company expects organic revenue to grow by 4% and adjusted earnings per share, assuming constant foreign currency exchange rates, to decline by 1%.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
The soda giant reported fiscal second-quarter net income of $2.04 billion, or $1.44 per share, up from $1.82 billion, or $1.28 per share, a year earlier.
Excluding restructuring and impairment charges, tax benefits and other special items, Pepsi earned $1.54 per share, topping the $1.50 per share expected by analysts surveyed by Refinitiv.
Net sales rose 2.2% to $16.44 billion, beating expectations of $16.43 billion. The company said that currency fluctuations negatively impacted its revenue during the quarter.
Second-quarter organic revenue was up 4.5%, topping the 4.4% growth expected. Pepsi has been trying to grow sales by investing more in advertising and marketing, as well as focusing on healthier snack and beverage options.
Frito-Lay North America was the strongest performer, reporting 5% organic revenue growth. The Cheetos maker credited sales growth in convenience and dollar stores for the unit's success.
In its North American Quaker Foods business, its cereal and Aunt Jemima maple syrup returned to growth, giving the segment its strongest quarter of organic revenue in three years.
The comeback of its North American beverage business continued, helped by its Starbucks coffee drinks and water business. Its organic revenue grew by 2.2%. As consumers drink less soda, Pepsi has turned to higher-growth beverage categories instead, releasing energy drinks like Mtn Dew Game Fuel and jumping in on the sparkling water trend with Bubly.
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View full coverage on Google NewsStrong sales growth of its snacks and beverages helped PepsiCo beat earnings estimates, despite a drag from foreign exchange.
Shares of the company rose less than 1% in premarket trading.
"Our performance for the first half and the progress we are making on our strategic priorities give us increased confidence in achieving the 2019 financial targets we communicated earlier this year," CEO Ramon Laguarta said in a statement.
In fiscal 2019, the company expects organic revenue to grow by 4% and adjusted earnings per share, assuming constant foreign currency exchange rates, to decline by 1%.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
The soda giant reported fiscal second-quarter net income of $2.04 billion, or $1.44 per share, up from $1.82 billion, or $1.28 per share, a year earlier.
Excluding restructuring and impairment charges, tax benefits and other special items, Pepsi earned $1.54 per share, topping the $1.50 per share expected by analysts surveyed by Refinitiv.
Net sales rose 2.2% to $16.44 billion, beating expectations of $16.43 billion. The company said that currency fluctuations negatively impacted its revenue during the quarter.
Second-quarter organic revenue was up 4.5%, topping the 4.4% growth expected.
Frito-Lay North America was the strongest performer, reporting 5% organic revenue growth. The Cheetos maker credited sales growth in convenience and dollar stores for the unit's success.
U.S. stock index futures were lower on Tuesday morning, as traders waited to hear from Federal Reserve Chairman Jerome Powell.
At around 03:35 a.m. ET, Dow futures slipped 93 points, indicating a negative open of more than 100 points. Futures on the S&P and Nasdaq were also lower.
Wall Street closed lower on Monday on the back of negative sentiment in the tech sector. However, the big focus this Tuesday is on the Federal Reserve. Jerome Powell will give a testimony at 8:45 a.m. ET. This comes just after a stronger-than-expected jobs report raised questions about the central bank's rate policy.
Traders have priced in a 100% probability of a Fed rate cut in July, according to the CME Group's FedWatch tool. However, expectations for a more aggressive cut were tempered by the jobs data released Friday.
Furthermore, a new NFIB survey will be out at 6 a.m. and a new JOLTS report will be released at 10 a.m. ET.
In the corporate world, PepsiCo and Levi Strauss will update investors on their latest performance.
While Amazon is busy hyping up this year's Prime Day extravaganza, its workers will be drawing attention to more serious issues than price cuts. Staff at a warehouse in Shakopee, Minnesota will hold six hours of strikes on July 15th (the start of Prime Day) to demand less stringent quotas and the conversion of more temporary workers into permanent employees. The quotas make the work dangerous and unreliable, according to the workers, and permanent work will help create a "livable future." Workers in the US have protested before (including a December protest in Minnesota over support for East African workers), but not during crucial sales days -- you've only really seen that practice in Europe until now.
The company has declined to comment on the strike.
It's not certain how Amazon will respond. Although Amazon isn't likely to face a major disruption due to the sheer number of fulfillment centers in the US, the strike could draw attention to ongoing worries that Amazon is demanding too much from its staff and putting them on a tight leash. The company recently raised its minimum pay to $15 per hour, but that mainly came after pressure from Senator Bernie Sanders and others calling for laws to rein in Amazon and other firms accused of shortchanging workers.
There are also concerns about the potential aftermath of the strike. Amazon workers recently filed complaints with the National Labor Relations Board alleging that the tech giant's staffing vendor, Integrity Staffing Solutions, retaliated against strikers by firing one organizer and deducting strike time from their quarterly leave allowance. Amazon said it hadn't seen the complaints, but they suggest that the strikers are risking punishment if they dare step away.