- PepsiCo beat Wall Street estimates for third-quarter profit and revenue.
- The company raised its full-year profit outlook.
Pepsi products at a supermarket in Crockett, California, USA, on Friday, June 16, 2023.
David Paul Morris | Bloomberg | Getty Images
PepsiCo on Tuesday reported quarterly earnings and sales that beat analysts’ expectations and raised its full-year earnings outlook.
The company’s shares rose 2% in premarket trading.
Here’s what the company reported compared to Wall Street’s expectations, based on an analyst survey from LSEG, formerly known as Refinitiv:
- Earnings per share: $2.25 adjusted vs. $2.15 expected
- Revenue: $23.45 billion vs. expected $23.39 billion
For 2023, Pepsi now expects constant currency earnings per share growth of 13%, up from its previous forecast of 12%. It’s the third quarter in a row that the snack and beverage giant has raised its full-year guidance.
Pepsi reported third-quarter net income attributable to $3.09 billion, or $2.24 per share, up from $2.7 billion, or $1.95 per share, a year earlier .
Excluding items, the company earned $2.25 per share.
Net sales rose 6.7% to $23.45 billion. The company’s organic revenue, which excludes acquisitions and divestitures, rose 8.8% in the quarter.
But PepsiCo’s volume, which excludes price and currency changes, fell again this quarter. Pepsi’s price increases to curb inflation have weakened demand for its products.
Pepsi’s North American beverage division reported a 6% volume decline. However, there were some bright spots. Gatorade, for example, saw double-digit sales growth. The company also plans to relaunch Mountain Dew Baja Blast, a fan-favorite flavor available only at Taco Bell.
The company’s North American food divisions performed better than its beverage division. Quaker Foods North America volume increased 1%, while Frito-Lay North America volume was flat. Quaker Foods’ brands also gained market share in key categories such as pancake mix and syrup, executives said in prepared remarks.