Some big US hitters reported their quarterlies on Thursday with PepsiCo quarterly revenue and profit beating Wall Street targets .
It sold more beverages and snacks across the developing world and posted a smaller sales decline in its North America beverages unit. Like rival Coca-Cola earlier this week, the introduction of new flavour variations and drinks helped the world’s second biggest beverage maker gain back ground in a US market where it has suffered from consumers shifting away from its high-sugar carbonated sodas.
Sales in the North America beverage unit, which makes Lipton tea and Mountain Dew as well as Pepsi itself, fell 1 per cent, but were still an improvement over the past two quarters when they decreased at least 3 per cent.
That helped push shares in the company almost 1 per cent higher. Revenue from Latin America, and its Europe and Sub-Saharan Africa region by contrast rose 14 per cent and 15 per cent respectively. Sales in Asia, the Middle East and North Africa rose by 7 per cent.
Pepsi earned 96 cents per share, beating analysts’ average estimate by 3 cents. Total revenue rose 4.3 per cent to $12.56 billion (€10.37 billion), topping analysts’ estimate of $12.40 billion.
Pickup trucks
General Motors also had a good quarter as it reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year.
Like rivals Ford and Fiat Chrysler, GM is banking on highly-profitable pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favour of these larger, more comfortable trucks, SUVs and crossovers.
The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 per cent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.
Revenue in the quarter totalled $36.1 billion, down from $37.3 billion in the first quarter of 2017. Analysts had expected revenue of $34.7 billion.
AbbVie reported a better-than-expected first-quarter profit, driven by higher sales of its rheumatoid arthritis drug Humira and cancer treatment Imbruvica. The company also raised its full-year earnings forecast and shares gained about 3 per cent to $94.44 before the bell.
Negotiating with rivals
AbbVie has been aggressively protecting Humira, which brings in nearly two-thirds of total revenue, by negotiating with rivals Amgen, Samsung Bioepis and Biogen fend off US competition from their biosimilars until 2023. Quarterly sales of the drug, the world’s best-selling prescription medicine, rose to $4.71 billion, beating estimates of $4.64 billion, Excluding items, AbbVie earned $1.87 per share, ahead of analysts’ estimate of $1.79.
AbbVie’s net revenue rose 21.4 per cent to $7.93 billion, ahead of average estimate of $7.59 billion. The company also said it would roll out part of a previously announced share repurchase program by May 1st, and buy back up to $7.5 billion worth of common stock. – Bloomberg
