PepsiCo Inc.’s share price down, posts upbeat Q2 earnings as snack and beverage volumes rise

July 23, 2014 1:03 pm

PepsiCo Inc. made a statement today, posting a slight increase in its earnings during the second quarter of the current fiscal year as the company managed to increase its snacks and beverages businesses’ volumes by 1%.

The company’s quarterly earnings report was posted only a day after its major competitor Coca-Cola Co. reported a 3% increase of its beverage volume.

According to the company’s statement, the second-quarter earnings of PepsiCo Inc. increased from 1.31 dollars per share over the same period a year ago to 1.32 dollars per share. The company also reported that its revenue rose from 16.81 billion dollars a year earlier to 16.89 billion dollars. In comparison, the initial analysts’ projections were of earnings of 1.23 dollars a share on revenue of 16.81 billion dollars.

The announcement of the quarterly performance of the company comes after one of the biggest pension funds on the territory of the U.S. has asked PepsiCo Inc. to include the activist investor Nelson Peltz in its board. The pension fund called Calstrs, which is an owner of a 250-million-dollar stake in the company, made its demand to the Senior Independent Director of Pepsi Mr. Ian Cook in June.

As reported by the Financial Times, the investment officer at Calstrs, who wrote the letter – Aiesha Mastagni said: “Trian has a long history of doing very well at these food and beverage companies.” Trian Partners, which is an investment firm owned by Mr. Peltz, has been recently trying to persuade U.S.-based PepsiCo Inc. to reorganize the corporate structure of the company and split off its snacks business.

PepsiCo Inc. was 0.82% down to close at 89.17 dollars per share yesterday, marking a one-year change of +3.21%. According to the information published on CNN Money, the 17 analysts offering 12-month price forecasts for PepsiCo Inc. have a median target of 93.00, with a high estimate of 108.00 and a low estimate of 85.00. The median estimate represents a +4.30% increase from the last price of 89.17.

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