Earnings: PepsiCo, Boeing, Pfizer top analyst expectations

ByABC News
July 22, 2009, 2:38 PM

— -- 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.

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.