PepsiCo shares are up 3% Tuesday morning after the company reported better-than-expected second-quarter earnings.
The beverage and snack maker posted core earnings of $1.61 per share, topping the Wall Street consensus of $1.52. Revenue came in at $16.09 billion, edging out the $16.04 billion that was anticipated.
Tostitos, prepared salsas, snack food
UNITED STATES - SEPTEMBER 29: Bottle of Gatorade are displayed on a shelf in an Associated Supermarket in New York Thursday, September 29, 2005. PepsiCo Inc., the world's No. 2 soft-drink maker, reported the biggest quarterly sales gain in 3 1/2 years as hot weather spurred demand for Gatorade sports drinks and Aquafina waters in the U.S. (Photo by Ramin Talaie/Bloomberg via Getty Images)
UNITED STATES - FEBRUARY 08: A bag of Fritos is displayed along with Fritos corn chips in New York Thursday, Feb. 8, 2007. PepsiCo Inc., the world's second-largest soft-drink maker, said fourth-quarter profit rose on a tax gain and overseas sales of Frito-Lay snacks. North American beverage volume had the smallest increase in six quarters. (Photo by Alicia Hansen/Bloomberg via Getty Images)
NILES, IL - DECEMBER 1: Cartons of Tropicana orange juice lie in a grocery store display December 1, 2004 in Niles, Illinois. Tropicana orange juice prices are expected to rise due to the hurricane-damaged citrus crop in Florida. (Photo by Tim Boyle/Getty Images)
NEW YORK, NY - APRIL 09: Cases of Sabra Classic Hummus are viewed on the shelf of a grocery store on April 9, 2015 in New York City. Sabra Dipping Co. is recalling 30,000 cases of hummus due to possible contamination with Listeria, the U.S. Food and Drug Administration said Wednesday. (Photo by Spencer Platt/Getty Images)
Bottles of PepsiCo Inc. Naked brand juice smoothies are arranged for a photograph in Tiskilwa, Illinois, U.S., on Thursday, July 2, 2015. PepsiCo Inc. is expected to report quarterly earnings on July 9, 2015. Photographer: Daniel Acker/Bloomberg via Getty Images
Quaker instant oatmeal
Doritos potato chips
UNITED STATES - JULY 09: Bags of Lays potato chips sit on display in an Associated Supermarket in New York on July 9, 2007. (Photo by Andrew Burton/Bloomberg via Getty Images)
NEW YORK, NY - FEBRUARY 16: Aquafina water seen on Day 6 of New York Fashion Week: The Shows on February 16, 2016 in New York City. (Photo by Mike Coppola/Getty Images for NYFW: The Shows)
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PepsiCo sales grew of 2.6% year-over-year despite a 1% drop in its North America beverage unit. Its Frito-Lay unit posted a 4% YoY sales growth, easily beating Wall Street's estimates of up 2.8%.
PepsiCo reiterated its full-year 2018 earnings-per-share guidance of $5.70, saying it remains "consistent with its previous guidance for 2018."
"We think a turnaround at North America will be central to the bull case for the stock," Jefferies analyst Kevin Grundy wrote in a note out to clients.
Grundy has a $103 price target on PepsiCo, roughly 6% below its current level.