PepsiCo reported a sharp jump in second-quarter earnings and revenue that topped Wall Street forecasts, though the results highlighted shifting consumer habits among U.S. shoppers.
The company posted net income of $2.98 billion, or $2.18 per share, more than doubling from a year earlier, as net sales rose 6.4% to $24.18 billion. Adjusted earnings of $2.20 per share narrowly missed consensus estimates, while organic revenue grew 2.4%. Under the surface, North American beverage volume fell 4% and convenient foods volume was flat, even as global food and beverage volumes climbed. Core operating margin narrowed 40 basis points to 16.8%.
The company reduced prices on key snack brands by up to 15% in February and reaffirmed full-year guidance for organic revenue growth of 2% to 4%.