PepsiCo exceeded expectations for its second-quarter earnings and revenue. The company also raised its full-year outlook, leading to a rise in shares during premarket trading.

PepsiCo reported quarterly earnings and revenue that outperformed analysts’ estimates and increased its full-year outlook. During premarket trading, the company’s shares rose by over 2%.

Based on a survey of analysts by Refinitiv, here’s how the company’s results compared to Wall Street’s expectations:

·Adjusted earnings per share: $2.09 vs. $1.96 expected

·Revenue: $22.32 billion vs. $21.73 billion expected

PepsiCo reported a second-quarter net income attributable to the company of $2.75 billion, or $1.99 per share, compared to $1.43 billion, or $1.03 per share, in the same period last year.

Excluding certain items, the beverage giant earned $2.09 per share.

Net sales increased by 10.4% to $22.32 billion, with organic revenue experiencing a 13% growth in the quarter after accounting for acquisitions and divestitures.

However, the company faced a decline in volume as higher prices for its snacks and beverages impacted consumer demand. PepsiCo’s food divisions experienced a 3% drop in volume (excluding pricing and currency fluctuations), while its beverages segment saw a 1% decline.

Quaker Foods North America’s volume decreased by 5%, and PepsiCo’s North American beverage unit reported a 4.5% volume decrease in the quarter. On a positive note, Frito-Lay North America reported a 1% volume growth.

PepsiCo now expects 10% organic revenue growth for 2023, up from its previous forecast of 8%. The company also raised its core constant currency earnings outlook to 12% growth, compared to its prior expectation of 9%.