Shares of PepsiCo Inc. rallied 1.8% in premarket trading Monday, after the beverage and snack giant reported second-quarter profit and revenue that fell less than expected, as snacks and food business remained resilient amid the COVID-19 pandemic. Net income fell to $1.65 billion, or $1.18 a share, from $2.04 billion, or $1.44 a share, in the year-ago period. Excluding non-recurring items, core earnings per share came to $1.32, above the FactSet consensus of $1.25. Revenue fell 3.1% to $15.95 billion, but topped the FactSet consensus of $15.37 billion. Frito-Lay North America revenue rose 6.6% to $4.27 billion, beverages North America revenue fell 6.6% to $4.97 billion and Quaker Foods North America revenue grew 23.0% to $664 million. The company said it was not providing full-year financial guidance given the uncertainties associated with the pandemic, but said it plans to return $7.5 billion to shareholders through dividends of $5.5 billion and stock repurchases of about $2 billion. The stock has gained 2.7% over the past three months, while the S&P 500 has run up 15.3%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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