On Tuesday, PepsiCo stock increased following its mixed third-quarter report and lowered annual sales forecast.
The New York-based firm’s stock closed the session by climbing 1.92% to $170.42 apiece. In after-hours trading, it continues to surge by 0.05% to $170.50 per stock.
Furthermore, Pepsi’s earnings per share (EPS) stood at $2.31, better than the analysts’ $2.29 consensus and $2.28 data from the previous quarter.
However, its revenue plummeted to $23.32 billion, compared to $23.90 billion forecasts, but the figure was higher than the last $22.50 billion report.
Meanwhile, Pepsi has lowered its full-year sales projection for two consecutive quarters. The company anticipates a low-single-digit increase from approximately 4.00% growth, compared with its previous at least 4.00% estimate.
Moreover, the firm continues to foresee a likely 8.00% surge in core constant currency EPS for this year. This suggested $8.15 per share, higher than analysts’ $8.13 forecast.
On the other hand, Bank of America (BoA) experts revealed that Pepsi’s EPS beat was steered by gross margin upside, which was increased by poor inflation and productivity.
They mentioned that the firm likely aims to maintain its reiterated EPS by exceeding its initial productivity expectations despite lowering the organic sales forecast. However, the Q3 volume performance indicates that additional measures might be necessary for next year.
India Adds on Pepsi Robust Performance
According to reports, Pepsi has revealed a significant double-digit organic revenue surge for the third quarter in the Indian market.
The company’s CEO, Ramon Laguarta, said the growth of the International, Southeast Asian, and Indian markets drove robust sales.
Sources noted that in the Indian region, Pepsi has experienced a high-single-digit surge in its beverage and convenience food unit volumes. This marked the firm’s solid strategy and adaptation to market changes.
The company’s earnings report also showed double-digit organic revenue growth in developing markets like India, Egypt, Turkey, Poland, and Vietnam, highlighting economic opportunities.
