PepsiCo Inc. (NYSE: PEP) reported second-quarter 2016 results before markets opened Thursday. The snack food and beverage company posted core (adjusted) diluted earnings per share (EPS) of $1.35 on revenues of $15.4 billion. In the same period a year ago, the company reported EPS of $1.32 on revenues of $15.92 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for $1.30 EPS and $15.37 billion in revenues.

On a GAAP basis, first-quarter EPS totaled $1.38 and net revenue fell 3.3% as a result of currency translation effects and deconsolidation in Venezuela.

For 2016, Pepsi now forecasts adjusted EPS growth of 9%, up from 8% previously. Core EPS are forecast at $4.71, one cent higher than the prior report. The consensus estimate had called for 2016 EPS of $4.73. Pepsi continues to expect a negative impact of around 4% on adjusted EPS due to currency exchange transactions and 2% due to Venezuelan deconsolidation.

The company also expects organic revenue to grow by 4% this year. Free cash flow is targeted at over $7 billion on operating cash flow of more than $10 billion, and capital spending is forecast at $3 billion for the year. These estimates are unchanged.

Pepsi plans to pay out about $4 billion in dividends this year ($3.01 annual rate) and buy back about $3 billion in stock.

CEO Indra Nooyi said:

In what continues to be an incredibly volatile global macro environment, we are pleased with our results for the second quarter. While reported net revenue performance was negatively impacted by foreign exchange translation and the deconsolidation of our Venezuelan operations, we delivered balanced volume growth and positive price/mix driven by relentless execution of our commercial agenda and leading to solid organic revenue growth. At the same time, our focus on driving greater efficiency throughout our operations contributed significantly to attractive margin expansion while we continued to invest in our business

PepsiCo’s shares were up about 1.54% in premarket trading Thursday, at $107.51, above the 52-week range of $76.48 to $106.98. Thomson Reuters had a consensus analyst price target of $112.28 before the report.

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