The Company shares rise 4.6% to $169.98 in the session, after showing that it beat third-quarter revenue estimates.
The company said it expects 2022 organic revenue to rise 12%, against the previous forecast of a 10% increase. PepsiCo had raised its earnings expectations in April and July.
The firm now expects constant currency earnings per share for fiscal 2022 of about $6.73, vs. its previous forecast of $6.63.
As for the most prominent results released, the The company’s net income increased about 9% to $21.97 billion.in the third quarter ended September 3, vastly beating analyst estimates of $20.84 billionaccording to IBES data from Refinitiv.
Also, the profit of the drinks and snacks giant has reached 2,700 million dollars in the period, or $1.95 per sharecompared to 2,220 million, or $1.60 per share, reaped in the same period of the previous year. Excluding non-recurring items, earnings per share for the period was US$1.97.which is above consensus projections from FactSet, which called for earnings of $1.84 per share.
For its part, Consumers, battling relentlessly rising inflation, are eating more at home than in restaurants as they cut back on discretionary spending. A trend that has benefited US packaged food makers like PepsiCo, which offer everything from snacks to sports drinks.
Packaged food manufacturers around the world are also grappling with rising costs for many raw materials and supply chain pressures that have been exacerbated by the conflict between Russia and Ukraine.
The near-duopoly of the carbonated beverage market with Coca-Cola (NYSE:KO) has helped PepsiCo raise prices with little pushback from consumers, while its strong position in the snack market has also dampened the company.
Price increases have helped boost revenue across all of its segments, especially its two largest divisions, North American beverages and Frito-Lay.
The beverage business, which houses brands such as Mirinda, 7UP and Gatorade, posted a 1% increase in volume, indicating resilience in consumer demand.
Source: Ambito
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