PepsiCo reported fiscal third-quarter earnings and revenue that topped Wall Street’s expectations, sending its shares up 2 percent in extended trading Wednesday. The maker of Gatorade and Tropicana juices said its net income increased 17 percent to $1.7 billion, or 93 cents per share, from $1.5 billion, or 79 cents per share, a year earlier. Revenue rose 5 percent to $10.3 billion from $9.8 billion a year earlier, fueled by rising sales volume of beverages in North America and Europe along with the addition of recent acquisitions in Latin America and India.
PepsiCo increased its annual projection on Wednesday morning following the release of third-quarter profits and sales results that above analyst forecasts.
Pre-market trading saw a 2% increase in shares.
According to Refinitiv, the performance of the owner of Mountain Dew, Gatorade, and Lay’s was as follows in comparison to Wall Street predictions:
$1.97 adjusted earnings per share, compared to $1.84 projected.
Revenue: $21.97 billion versus the anticipated $20.84 billion.
The business has increased its organic sales growth forecast for 2022 from 10% to 12%. It anticipates core profits per share to expand by 10% in constant currency, up from 8%.
Despite a decline in volume, the business reported a 20% increase in revenue for its Frito-Lay North America segment in the quarter. Despite a drop in volume, Quaker Food North America’s income increased by 15% as well. On slightly greater volume, PepsiCo Beverages North America’s revenue climbed by 4%.
Despite decreasing volumes, PepsiCo’s European division saw sales rise by 1%. 4% more money was made in Africa, the Middle East, and South Asia on lower food volume and greater beverage volume. The Asia Pacific and China segment had a 3% increase in revenue thanks to greater volume in both food and beverages.
Previously, PepsiCo stated that it anticipated that expenses will continue to rise in the second half of this year. In response, the business said that it was stepping up its cost-management activities, adopting smaller sizes for its variety packs, among other things.
PepsiCo’s net income increased from $2.22 billion to $2.7 billion during the three months that ended on September 3 of last year. Total sales increased by 9% to $21.97 billion from $20.19 billion a year earlier.
The 25th of October is the anticipated date for Coca-Cola to release its financial results.