PepsiCo Inc. topped third-quarter profit estimates and raised its annual forecast after sales of its snacks and drinks in North America outweighed weaker results abroad.
Core earnings were $1.40 a share in the third quarter, the Purchase, New York-based company said in a statement Thursday. Analysts had estimated $1.32, on average. Currency fluctuations weighed on sales, though, sending them down 1.9 percent in the period.
PepsiCo’s North America beverage and Frito-Lay divisions boosted the company’s results in the quarter, even as the strong dollar hurt sales abroad. The company -- the world’s largest snack maker and second-largest nonalcoholic beverage maker -- has benefited from the relative strength of US consumers, as well as cost-cutting measures that have helped profitability.
“Our product portfolio, geographic mix and capability centers are enabling us to deliver balanced revenue and productivity,” Chief Executive Officer Indra Nooyi said in the statement.
The shares rose 2.3 percent to $109.90 in early trading Thursday after the results were released. The stock had been up 7.5 percent this year through Wednesday’s close.
PepsiCo now expects core earnings of $4.78 a share this year, compared with a previous forecast for $4.71.
Excluding currency effects, revenue grew 4.2 percent last quarter. The sales totalled $16 billion, topping the $15.8 billion estimated by analysts.
News by Bloomberg, edited by Hospitality Ireland
