Categories Earnings, Retail

PepsiCo’s Q3 results beat market expectations

PepsiCo Inc. (NASDAQ: PEP) surpassed analysts’ expectations for revenue and earnings in the third quarter of 2019, sending shares climbing 3.3% in premarket hours on Thursday.

Total revenues grew 4.3% year-over-year, both on a reported and organic basis, to $17.1 billion, beating estimates of $16.9 billion.  

PepsiCo beat revenue and earnings estimates for Q3 2019

Net earnings were $2.1 billion, or $1.49 per share, compared to $2.4 billion, or $1.75 per share, in the prior-year period. Core EPS amounted to $1.56, surpassing forecasts of $1.50.  

CEO Ramon Laguarta said, “We are making good progress against our strategic priorities and our businesses are performing well as we continue to make the necessary investments in our capabilities, brands, manufacturing and go-to-market capacity to propel our future growth.”

During the quarter, PepsiCo posted revenue increases across all its segments, both on a reported and organic basis. The highest growth was recorded in the Europe Sub-Saharan Africa segment, which rose 6% to $3.3 billion. This was followed by Frito-Lay North America which grew 5.5% to $4.1 billion.  

Also read: McCormick Q3 2019 Earnings Report

The company saw mixed results for segment operating profit. Profits increased in the Frito-Lay North America, Europe Sub-Saharan Africa, and Asia, Middle East and North Africa segments. The remaining segments saw declines with the highest drop of 12% in Quaker Foods North America.

PepsiCo expects to meet or exceed its full-year 2019 organic revenue growth target of 4%. The company also expects core EPS to be $5.50, down 3% from 2018. Core constant currency EPS is expected to decline by approx. 1%.

Rival beverage company Coca-Cola (KO) is scheduled to unveil its third-quarter numbers on October 18 before the opening bell. Market watchers predict a 2% dip in earnings to $0.56 per share.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

SBUX Earnings: Key quarterly highlights from Starbucks’ Q4 2024 financial results

Starbucks Corporation (NASDAQ: SBUX) reported its fourth quarter 2024 earnings results today. Consolidated net revenues declined 3%, including on a constant currency basis, to $9.1 billion compared to the same

Key highlights from Biogen’s (BIIB) Q3 2024 earnings results

Biogen Inc. (NASDAQ: BIIB) reported its third quarter 2024 earnings results today. Total revenue decreased 3% year-over-year to $2.46 billion. Revenues were down 3% on a constant currency basis as

Infographic: Caterpillar (CAT) reports lower Q3 revenue and adj. profit

Caterpillar Inc. (NYSE: CAT), a leading manufacturer of construction and mining equipment, on Wednesday reported a decrease in revenue and adjusted earnings for the third quarter of 2024. Sales and

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top