Please do not leave this page until complete. This can take a few moments.
Revenue rose 11 percent to $10.17 billion from $9.13 billion last year.
Analysts polled by Thomson Financial had predicted earnings of 96 cents per share on revenue of $9.91 billion.
The earnings estimates typically exclude one-time items. The company said that excluding a $115 million tax benefit, it generated core earnings of 99 cents per share.
While that was higher than Wall Street's estimate, its shares fell 65 cents to $72.95 in morning trading Thursday after rising as high as $74.10 earlier in the session.
In addition to Pepsi beverages and Frito-Lay snacks, the company owns Gatorade and Tropicana drinks and the Quaker foods business. PepsiCo is the second biggest soft drink company after The Coca-Cola Co. in Atlanta.
The company reiterated its full-year earnings per share forecast of at least $3.35.
Overall operating profit grew 10 percent.
The fast-growing PepsiCo International unit reported operating profit grew 19 percent on revenue growth of 22 percent. Revenue was boosted 6 percentage points by favorable foreign currency comparisons and another 7 points by the effect of acquisitions and divestitures. The steepest growth this quarter was in Asia, as snacks grew 20 percent and beverages grew 12 percent.
The company's three other divisions reported single-digit growth in operating profit and revenue.
Frito-Lay North America had 7 percent operating profit growth on a 6 percent rise in revenue. PepsiCo Beverages North America operating profit grew 7 percent on a 3 percent rise in revenue. And Quaker Foods North America operating profit and revenue each grew 2 percent.
The company reported weakness in two areas, as sales volume declined 2 percent for Quaker and 1 percent for PepsiCo Beverages North America.
Sales of carbonated soft drinks in North America declined 3 percent while non-carbonated beverages grew 2 percent, led by Lipton ready-to-drink teas. Sales volumes of Gatorade, juice and juice drinks fell by a mid-single digit rate, while Aquafina water volume grew by a mid-single digit rate.
Analysts have closely watched for a recovery in Gatorade sales, but were disappointed by modest declines in the quarter.
"Investors may pick at continuing volume softness at Gatorade, but management will likely ease concerns by talking optimistically about new products and better margins next year," Goldman Sachs analyst Judy Hong told investors.
PepsiCo plans to launch a new low-calorie Gatorade called G2 in December.
At Frito-Lay, Doritos, Sunchips, multi-packs and dips grew by double-digits while Lay's reported declines.
"All of the Company's operating divisions successfully navigated through an environment of higher input costs," Chief Executive Indra Nooyi said in a statement. "Our third-quarter performance was very strong."
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments