PepsiCo expects smaller decline in annual core earnings
PepsiCo shares were up 1.2% in premarket trading after the company reported a surprise rise in second-quarter revenue. The stock is down about 11% this year.
The company now expects full-year core earnings per share to fall 1.5%, compared with a 3% decline expected previously.
"Our core USD EPS outlook has improved versus our previous expectations as foreign exchange headwinds have moderated, due to the weakening of the U.S. dollar," CEO Ramon Laguarta said in a statement, adding that North America business improved in key categories and channels.
PepsiCo, like rival Coca-Cola, has responded to a shift towards healthier snacking from consumers by offering options such as its recently acquired prebiotic soda brand Poppi and new flavors under popular brands such as Lay's and Doritos.
While higher prices over the past few years have helped shield the company's margins, PepsiCo is also trying to offer more products are lower price points to appeal to cost-conscious consumers.
The company's second-quarter revenue rose about 1% to $22.73 billion, compared with analysts' average estimate of a 0.99% decline to $22.28 billion, according to data compiled by LSEG.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
18 minutes ago
- The Independent
Trump claims he's made a ‘massive' trade deal with Japan
President Donald Trump boasted Tuesday that he had made a 'massive' deal with Japan that would generate 'thousands of jobs' and billions of dollars for the U.S. The president announced the trade framework – 'perhaps the largest Deal ever made' – in a Truth Social post Tuesday, revealing that a 15 percent tax on goods imported from Japan had been agreed. In the post Trump said Japan would invest 'at my direction' $550 billion into the U.S. and would 'open' its economy to American-made vehicles as well as 'rice' and 'other things.' But further details remained scant. The 15 percent tax on imported Japanese goods is a significant drop from the 25 percent rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting on August 1. 'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,' the president posted on Truth Social, adding that the United States 'will continue to always have a great relationship with the Country of Japan.' 'This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan. Thank you for your attention to this matter!' Early Wednesday in Tokyo, Japanese Prime Minister Shigera Ishiba confirmed the new trade agreement, saying it would benefit both sides and help them work together. 'The government was determined to protect national interests,' Ishiba told reporters, per the Wall Street Journal. Trump's announcement appeared to excite investors, with the benchmark Nikkei – the Tokyo stock market – climbing 2.6 percent to its highest in a year, with shares of automakers also surging. Toyota grew by more than 11 percent, with Honda and Nissan both up more than 8 percent. But American automakers were less buoyed with the deal, with concerns raised over low import levies from Japan, compared to tariffs on imports from Canada and Mexico remaining at 25 percent. Matt Blunt, head of the American Automotive Policy Council, said, "Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.'
Reuters
18 minutes ago
- Reuters
Dollar holds losses after Trump announces Japan trade deal
TOKYO, July 23 (Reuters) - The dollar stayed weak on Wednesday, having lost ground overnight, after U.S. President Donald Trump announced a trade deal with Japan ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen flipped to losses on the day after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. In a post on Truth Social, Trump said that a tariff rate of 15% was set on imports from Japan, down from the 25% rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar traded at 146.90 yen , up 0.2% after having slid 0.5% in the previous session. The dollar index , which tracks the greenback against major peers, was little changed at 97.48 after a three-day decline. The gauge has lost 6.6% since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15% tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, has made up his mind to announce his resignation by the end of August, the Mainichi newspaper reported. The euro stood at $1.1736 , down 0.2%. Sterling was little changed at $1.35180 , off 0.1%. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
Reuters
an hour ago
- Reuters
Telecoms giant America Movil swings to profit on foreign exchange gains
MEXICO CITY, July 22 (Reuters) - Mexican telecoms giant America Movil ( opens new tab reported on Tuesday a swing to profit in the second quarter of 2025, surpassing analysts' forecasts and fueled by foreign exchange gains from currencies across Latin America. Analysts are scrutinizing the firm's earnings results for clues to the landscape of toughening competition in Mexico, the region's second-largest economy, where rivals such as Walmart ( opens new tab and Televisa ( opens new tab jostle for subscribers. America Movil pointed in a report to 11 billion pesos in FX gains - equivalent to half its net profit - which it said had allowed it to "significantly" cut down its financing costs. Net profit for the group, controlled by the family of Mexican billionaire Carlos Slim, hit 22.28 billion pesos ($1.19 billion) in the three months through June, rebounding from a loss of 1.09 billion pesos in the corresponding quarter a year earlier. Analysts polled by LSEG had expected profit of $1.13 billion. Revenues for the firm, which operates across Latin America and Europe, rose 14% to 233.79 billion pesos, or $12.46 billion, also above analysts' forecast of $12 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% to 92.41 billion pesos. Scotiabank analysts hailed the Mexico revenues of America Movil as "remarkably resilient in light of a weak economy" and competition, adding that they believed fixed internet rivals would hit back with price cuts and improved speed and quality. Such competition is highlighted by the efforts of retail giant Walmart's (WMT.N), opens new tab mobile service Bait, which added 1.7 million new active users versus the prior three months, while broadcaster Televisa's ( opens new tab broadband service swept in thousands of new customers. America Movil said its revenue, reported in Mexican pesos, was also boosted by the currency's depreciation against most others in the regions where it operates. "The second quarter was characterized by significant uncertainty associated with the tariffs that the U.S. government seeks to impose on merchandise imports," it said. As a result, it added, the U.S. dollar also weakened against most currencies in the company's operating region. America Movil said mobile services growth was driven by its post-paid segment, which added 2.9 million customers in the three months through June, including 1.4 million from Brazil. Its pre-paid platform, however, was hit by 1.1 million net disconnections, though the firm added 462,000 new broadband connections, half in its home market of Mexico. Scotiabank analysts also pointed to a "rare" inflow from the group's pension funding in the second quarter, which they said was unlikely to continue due to union tensions over company plans to convert pension liability into stock. ($1=18.7654 pesos at end-June)
