Investing.com — PepsiCo, Inc. reported third-quarter earnings that beat analyst expectations, but revenue fell short of expectations as the company faced subdued category performance in North America and international business disruptions. The beverage and snack giant also lowered its full-year organic sales growth forecast.
PepsiCo (NASDAQ:PEP) posted third-quarter adjusted earnings per share of $2.31, beating analyst consensus of $2.29. However, revenue came in at $23.32 billion, missing the $23.9 billion estimate. The company’s shares fell 1% after the announcement, reflecting investor concerns about the lost revenue.
Commenting on the results, Chairman and CEO Ramon Laguarta said: “Our businesses remained resilient in the third quarter despite subdued trends in category performance in North America, the continued impact associated with certain recalls at Quaker Foods North -America and business disruptions due to increasing geopolitical developments.” tensions in certain international markets.”
PepsiCo has revised its organic sales growth outlook for 2024 and now expects an increase in the low single digits compared to the previous forecast of around 4%. Despite the lowered revenue expectations, the company maintained its forecast of flat core earnings per share of 8% for the full year.
Laguarta emphasized the company’s focus on cost management, saying, “We will focus on tightly controlling our costs to better align with the moderate growth environment we are currently operating in.”
For fiscal 2024, PepsiCo expects core earnings per share of at least $8.15, slightly above the analyst consensus of $8.14. This guidance implies an increase of 7% compared to 2023 core EPS of $7.62.
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