PepsiCo Surpasses Wall Street Expectations, Raises Full-Year Earnings Outlook

Beverage and Snack Giant Continues Growth Trend, Boosting 2023 Earnings Forecast

In a recent announcement, PepsiCo exceeded third-quarter earnings and revenue expectations, subsequently revising its full-year earnings forecast to reflect ongoing growth. Following this news, shares of the company saw a 2% increase in premarket trading.

Here is a breakdown of the company’s report in comparison to Wall Street’s projections, based on a survey of analysts conducted by LSEG (formerly known as Refinitiv):

  • Earnings per share (adjusted): $2.25 vs. $2.15 expected
  • Revenue: $23.45 billion vs. $23.39 billion expected

For the fiscal year 2023, PepsiCo has now revised its outlook for constant currency earnings per share growth to 13%, an increase from its previous estimate of 12%. This marks the third consecutive quarter in which the global snacking and beverage giant has raised its full-year forecast.

PepsiCo reported third-quarter net income attributable to the company amounting to $3.09 billion, equivalent to $2.24 per share. This is a notable increase from the previous year’s figures, which stood at $2.7 billion in net income, or $1.95 per share.

Adjusting for specific items, the company achieved earnings of $2.25 per share. Concurrently, net sales experienced a 6.7% increase, reaching $23.45 billion. Furthermore, PepsiCo’s organic revenue, which excludes the impact of acquisitions and divestitures, demonstrated robust growth with an 8.8% surge during the quarter.

However, the company also faced a decline in volume this quarter, a metric that excludes the influence of pricing and currency fluctuations. This drop in volume is attributed to PepsiCo’s implementation of price hikes aimed at offsetting inflationary pressures, which has, in turn, dampened consumer demand for its products.

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