PepsiAmericas, Inc (PAS) is reaping the benefits of European acquisitions as it records an 18% year-over-year increase in second-quarter earnings. The stock has rebounded quite nicely after setting a 52-week low, is a Zacks Rank #1 rated stock, and just raised 2008 full-year guidance.
PepsiAmericas, Inc produces, distributes, and markets soft drinks under several well known PepsiCo brands, including Pepsi, Mountain Dew, and 7UP. The company operates across the United States, Europe, and the Caribbean. PepsiAmericas is headquartered in Minneapolis, has over 20,000 full-time employees, and carries a market cap of $3 billion.
A Solid Second Quarter
On July 22nd, PepsiAmericas announced its second-quarter results, including earnings per share of 72 cents. The announcement was 16% higher than the consensus estimate of 62 cents and a year-over-year increase of 11 cents.
The company saw strong revenue growth of 12% attributed to acquisition and increasing volume in European markets.
PepsiAmericas Raises Guidance
PepsiAmericas also raised the 2008 EPS estimate to between $1.92 and $1.96, up from between $1.77 to $1.83. The company's new target reflects earnings growth of 16-18%.
Analysts have also raised the consensus estimate for 2009 EPS in the past 60 days, now $2.13 up from $2.00.
Announces Share Repurchase Increase and Dividend
The company announced 10 million shares of common stock have been authorized for repurchase. There is no timeline for the repurchase and the company has approximately 127 million shares outstanding.
PepsiAmericas also declared a third-quarter dividend of 13.5 cents per share, the same as the previous quarter. The date of record is September 15th and will be payable on October 1st.
Shares of PAS are consolidating near $24 following the second-quarter announcement. Prior to the earnings surprise in July the company was trading at the 52-week low. Take a look at the chart below.