PepsiCo stock has gained more than 1% in premarket Tuesday after the food and beverage giant's second-quarter profits and revenue beat analysts' forecasts.
PepsiCo (ticker: PEP) said core earnings per share for the quarter ended June 11 came in at $1.86 , above the FactSet consensus call of $1.74.
Revenue increased 5.2% to $20.23 billion . Analysts surveyed by FactSet had estimated revenue would be $19.51 billion.
Shares in PepsiCo rose 1.6% to $173.24 ahead of the market open. Pepsi stock has fallen about 1.9% so far this year, while the S&P 500 has tumbled 19%. That outperformance has come as investors, worried about consumer spending given high inflation and a potential recession, have favored so-called haven stocks such as consumer staples.
PepsiCo said that it now expects to deliver fiscal 2022 revenue growth of 10%, compared with its previous guidance of 8%. The company also affirmed its 2022 adjusted EPS outlook of $6.63, which compares with the FactSet consensus of $6.64.
Pepsi's results could offer clues about other consumer staple stocks, many of which have outperformed the broader market. The Consumer Staples Select Sector SPDR exchange-traded fund (XLP) is off 5.5% this year. Coca-Cola (KO) is up 6.4%, helped in part by a global reopening, as it gets more of its business away from home.