Pepsi +2.2% after raising full-year guidance on strong results

|By:, SA News Editor

PepsiCo (NYSE:PEP) +2.2% premarket after beating expectations for Q2 earnings and revenues and raising its full-year earnings outlook.

PEP now sees FY 2014 EPS of ~$4.53, up 8% Y/Y vs. a prior forecast of 7% growth, and reaffirms revenue guidance of growth in the mid-single digits vs. 2013, based on the strength of YTD results and its outlook for the rest of the year; currency translation effects are expected to have a negative impact of ~4% on 2014 EPS growth.

For Q2, volumes in the beverage and snack categories rose 1% and carbonated soft drink volume in the North American market fell 2%, a day after rival Coca-Cola (NYSE:KO) said its North American soda volumes were flat in the quarter.

The Americas foods business posted $6.07B in revenue, up less than 1%, as Frito-Lay North America sales rose 1.7%; Latin America foods sales were relatively flat at $2.12B, and Quaker Foods North America sales fell 2.3%.

Gross margin rose to 54% from 53%; input costs fell 1.5% to $7.78B.