PepsiCo Q2 2022 Earnings Beat Wall Street Estimates
PepsiCo has raised its revenue outlook for the year, as inflation pushed up prices and people paid more for its Doritos chips and Gatorade drinks as it deploys price hikes, smaller sizes to fight rising costs.
Expecting costs to rise even higher in the second half of the year, the global food and drink giant said it plans to keep shrinking product sizes and deploying other ways to manage rising expenses.
“We are facing inflation like everyone else, and we think that is going to persist for a while, but we are taking enough pricing to be able to manage the inflation, and our focus is really much more on how do we drive costs out of the business,” Hugh Johnston, PepsiCo’s Chief Financial Officer, said on CNBC’s ‘Squawk Box.’
Shares of the company rose less than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.86 adjusted vs. $1.74 expected
- Revenue: $20.23 billion vs. $19.51 billion expected
Pepsi reported second-quarter net income of $1.43 billion, or $1.03 per share, down from $2.36 billion, or $1.70 per share, a year earlier.
This article was first published by Amelia Lucas on CNBC.
