Shares of PepsiCo Inc. /zigman2/quotes/208744353/composite PEP -0.54% rose 0.9% in premarket trading Tuesday, after the beverage and snack giant reported fiscal second-quarter profit and revenue that were well above expectations, and affirmed its full-year outlook. "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 Chief Executive Ramon Laguarta. Net income fell to $1.43 billion, or $1.03 a share, from $2.36 billion, or $1.70 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.86 was above the FactSet consensus of $1.74. Revenue grew 5.2% to $20.23 billion, beating the FactSet consensus of $19.51 billion, as North America revenue for Frito-Lay, PepsiCo Beverages and Quaker Foods all topped expectations. Cost of sales rose 6.0% to $9.42 billion, as gross margin contracted to 53.4% from 53.8%. For 2022, the company affirmed its adjusted EPS outlook of $6.63, which compares with the FactSet consensus of $6.64. The stock has slipped 1.9% year to date through Monday, while the SPDR Consumer Staples Select Sector ETF /zigman2/quotes/200697959/composite XLP -0.36% has declined 5.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.40% has dropped 19.1%.
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