PepsiCo beats analysts' expectations in Q3
PepsiCo on Tuesday reported stronger than expected earnings for the third quarter, boosted by stronger sales of snacks and beverages in North America.
The Purchase, N.Y.-headquartered beverage and snack giant reported earnings of $1.35 per share on $16.33 of revenue and raised its 2015 earnings per share growth guidance to 9%.
Analysts had predicted a net income of $1.26 a share on $16.15 billion in revenue, the consensus of analysts surveyed by Thomson Reuters. The company delivered $1.36 a share on $17.22 billion in revenue a year earlier.
PepsiCo (PEP) shares were up 2.5% in pre-market trading, trading at $98.45.
North America Beverages increased net sales 4.1% to $5.36 billion, and revenue from Frito-Lay North America was up 0.8% to $3.56 billion.The company said on Tuesday that it took a charge of $1.4 billion, or 92 cents per share, as it changed its accounting for its Venezuela operations.
It marked the fourth straight quarter that PepsiCo has seen a decline in overall revenue. The company is facing declining American appetite for soda and difficult foreign currency exchange.
“But (as) the marketplace starts shifting more toward non-carbs, we got to make sure that we step up our invention in non-carbs, our innovation in non-carbs,” CEO Indra Nooyi said during a call with industry analysts Tuesday.
Pepsi announced in August that it ceased using aspartame in its diet colas, and switched to the artificial sweetener sucralose. Nooyi said it was too early to say how the new formulated Diet Pepsi is doing with consumers.