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Shares of PepsiCo (NASDAQ:PEP) are up over 1% in pre-open Tuesday after the company raised its full-year revenue guidance.
PEP reported Q2 EPS of $1.86 to beat the analyst estimate of $1.74. Revenue for the quarter came in at $20.23 billion versus the consensus estimate of $19.51 billion.
On the guidance front, the company now expects to deliver 10% full-year organic revenue growth, higher than the prior guidance of 8%.
“We are pleased with our results for the second quarter as our business momentum continued despite ongoing macroeconomic and geopolitical volatility and higher levels of inflation across our markets,” said Chairman and CEO Ramon Laguarta.
Goldman Sachs analyst Bonnie Herzog took note of another beat-and-raise from PepsiCo, while the raised guidance is seen as a “nice positive surprise in a challenging environment, which should be viewed favorably”.
“We believe the stock should outperform today on much better-than-expected Q2 results and strong outlook. Given PEP’s strong brand portfolio (esp. Frito Lay) and long-term growth opportunities in Beverages, we reiterate our Buy (on CL) rating on the stock,” Herzog told clients in a note.
