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Investors Cheer PepsiCo's Q3 Results, Outlook

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PepsiCo, Inc. (NYSE: PEP) delivered better than expected core EPS and revenue for the third quarter. The company's outlook for the current fiscal year came in above the estimates.

The company reported GAAP EPS of $1.37 compared to $0.36 representing a 282 percent jump from the previous year period that included Venezuela impairment charges. Its reported net income was $1.99 billion. Foreign exchange translation unfavorably impacted its EPS by three percentage points. Its core EPS of $1.40 for the recent third quarter, which represented an increase of four percent, came in above the Street estimates of $1.35 a share.

PepsiCo's net revenue fell 2 percent from $16.33 billion to $16.03 billion in the most recent third quarter. However, this was above the analysts' predictions of $15.83 billion.

Chairman and CEO, Indra Nooyi, commented, "We are pleased with our results for the third quarter and year to date. We are executing our strategy well and managing what is in our control. Our product portfolio, geographic mix and capability centers are enabling us to deliver balanced revenue and productivity."

Moving ahead, PepsiCo expects core EPS to be $4.78 for the full year 2016. This is slightly ahead of analysts' estimates of $4.76. The company expects organic revenue to achieve four percent growth.

The stock advanced $2.80, or 2.61 percent, to $110.18 in the pre-market trading on Thursday.

 

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