UPDATE: PepsiCo Posts Upbeat Q3 Earnings, Lifts FY14 Forecast

PepsiCo PEP reported better-than-expected third-quarter earnings and lifted its earnings forecast for the year. The Purchase, New York-based company posted a quarterly profit of $2.01 billion, or $1.32 per share, versus a year-ago profit of $1.92 billion, or $1.23 per share. Excluding certain items, the company earned $1.36 per share. Its revenue rose 1.8% to $17.22 billion, while organic revenue climbed 3.1%. However, analysts were expecting earnings of $1.29 per share on revenue of $17.07 billion. Net revenue in Frito-Lay North America division rose 3%, while revenue in Latin America Foods division climbed 6%. Revenue from Quaker Foods North America division dropped 3%, while PepsiCo Americas Beverages organic and reported net revenue were even. Carbonated soft drink volume in the North American market shrank 1.5% in the quarter. Volumes in its beverage and snack categories rose 1% in the quarter. PepsiCo's core gross margin widened 45 basis points, while reported gross margin rose 55 basis points. "We delivered good third quarter results in the face of an ongoing challenged macroeconomic environment driven by increasing volatility in the emerging markets and continued sluggish consumer demand in developed markets," said Chairman and CEO Indra Nooyi. PepsiCo now projects core EPS growth of 9% for the year, versus its earlier forecast of 8% growth. PepsiCo shares rose 2.21% to $95.16 in pre-market trading.