PepsiCo Reaffirms Outlook on International Strength, WD-40 in Focus

Mukesh Buch
10 Jul, 2018
New York City

PepsiCo net declined but the food and beverage maker reaffirmed fiscal 2018 forecast and highlighted strength in international markets. The Simply Good Foods net more than doubled.

[R]12:20 PM New York City, New York – PepsiCo net declined but the food and beverage maker reaffirmed fiscal 2018 forecast and highlighted strength in international markets. The Simply Good Foods net more than doubled.[/R]

Tollbooth Index increased 67.94 or 0.4% to 15,363.54 but for the year-to-date soared 11.7%.

Earnings Review

AAR Corp ((AIR)) rose 12 cents to $48.21 ahead of aviation services provider schedule to release its fourth-quarter earnings results after market close.

PepsiCo, Inc ((PEP)) jumped 4.1% or $4.41 to $112.17 after the non-alcoholic beverages and snacks manufacturer reported net revenues in the second-quarter ending on June 16 increased 2% from a year ago to $16.1 billion.

Net income in the quarter declined 14% to $1.8 billion or $1.28 per diluted share from $2.1 billion or $1.46 in the same quarter last year.

PepsiCo reaffirmed fiscal 2018 revenue growth of about 2.3% and earnings per share to jump 9% to $5.70 from a year ago period and total cash returns to shareholders of about $7 billion.

“The majority of our businesses performed very well, particularly our international divisions propelled by continued growth in developing and emerging markets,” said chairman and chief executive officer Indra Nooyi.

The Simply Good Foods Company ((SMPL)) soared 6.8% or $1.03 to $16.18 after the branded nutritional foods and snacking products maker said net sales in the third-quarter ending on May 26 jumped 11.1% from a year ago to $107.2 million.

Net income in the quarter more than doubled to $7.4 million or 10 cents per diluted share from the same quarter last year.

Simply Good Foods forecasted fiscal 2018 operating profit will be slightly lower than net sales growth.

WD-40 Company ((WDFC)) increased 18 cents to $151.38 ahead of lubricants and cleaning products maker’s scheduled fourth-quarter earnings results after market close.