Earnings: PepsiCo, Boeing, Pfizer top analyst expectations

Despite losses at PepsiCo and Pfizer, both companies beat analyst expectations for the second quarter in earnings reported Wednesday. Commercial airline manufacturer Boeing saw second-quarter earnings rise 17%, also exceeding analyst expectations.

Soft drinks and snack maker PepsiCoPEP said its second-quarter profit fell 2% as sales dropped 3%, but it still beat analyst expectations.

It said it has used pricing strategy, new products and cost controls to help it navigate the dour economy. It continued to raise prices to offset commodity costs that remained high earlier in the year. It also lured cost-conscious shoppers with promotions or by giving them more product for the same price as before.

The maker of Pepsi cola and Frito-Lay snacks earned $1.66 billion, or $1.06 a share, in the three months that ended June 13. That's down from the $1.7 billion, or $1.05 a share, a year earlier.

Purchase, N.Y.-based Pepsi, which also sells Gatorade and Tropicana, said revenue slumped 3% to $10.59 billion. Analysts had expected revenue of $10.99 billion.

In North and South America, revenue from drinks sales fell 7%, on a constant currency basis, as soda demand remained weak. And sales of Gatorade continued to fall as consumers turned to cheaper alternatives. Still, the lower-calorie sports drink G2 posted double-digit volume growth.

Pepsi's diverse products and geographic reach helped it offset weakness in the U.S. economy.

Pepsi said sales grew at Frito-Lay and its food business in North and South America. Pepsi International results were mixed, with declines in Europe but growth in Asia, the Middle East and Africa.

"The good news is that we kept consumers with us," Chief Financial Officer Richard Goodman said. He said the higher net prices were used to cover commodity costs but that had not driven away consumers.

BoeingBA said its second-quarter earnings rose 17% from a year earlier, when a charge weighed down results. Higher defense sales and lower costs in its commercial aircraft division boosted the company's profit in the latest period.

The Chicago-based company also said it would announce a revised schedule for its long-delayed 787 jetliner in the third quarter. Boeing's credibility suffered a serious blow last month when it announced the latest of several costly delays of the plane's inaugural test flight.

Boeing, the world's second-largest commercial plane maker, said it earned $998 million, or $1.41 a share, for the three months ended June 30. That compares with $852 million, or $1.16 a share, during the same period last year, which included a charge of 22 cents a share for late delivery of military aircraft.

Revenue edged up 1% to $17.15 billion.

Analysts surveyed by Reuters had expected a profit of $1.21 a share on revenue of $17.15 billion. Analyst estimates typically exclude one-time items.

Boeing and its European arch rival, Airbus, face dwindling orders for new planes as the global recession undercuts demand for air travel and cargo services.

Drug giant PfizerPFE said its second-quarter profit plunged 19%, as the strong dollar pulled down revenue and higher taxes and costs for its pending purchase of rival Wyeth hurt the bottom line. Still, Pfizer raised its 2009 profit forecast slightly.

The maker of cholesterol fighter Lipitor, impotence treatment Viagra and stop-smoking drug Chantix said its net income was $2.26 billion, or 34 cents a share. That compares with net income of $2.78 billion, or 41 cents a share, in the second quarter of 2008.

Excluding charges totaling 14 cents a share, Pfizer's earnings per share were 48 cents, topping analyst estimates by a penny.

Revenue totaled $10.98 billion, down 9% from the second quarter of 2008.

Sales were down in all five of New York-based Pfizer's business units, dropping the most — 20% — in the unit marketing established products that have lost patent protection.

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