PepsiCo Tops Q3 Forecasts on Lower Earnings

It continues to project a decline in annual revenue this year

   

PepsiCo (NYSE:PEP) announced on Wednesday that it earned $1.9 billion during the third quarter, down 5% from $2 billion in the same period last year. Adjusted EPS came in at $1.20, beating the $1.16 that analysts had anticipated, the Associated Press noted.

The soft-drink and snack-food maker reported quarterly revenue of $16.65 billion, down 5% from last year. That fell short of the $16.96 billion that Wall Street had forecast.

Pepsi Soft Drink 200x200 PepsiCo Tops Q3 Forecasts on Lower Earnings
Coke, Pepsi to Display Calories on Soda Machines

Shares of PepsiCo rose fractionally in Wednesday morning trading.

Company officials attributed the lower revenues to the impact of a rising U.S. dollar on international sales as well as operational adjustments. Removing these factors, revenue increased 5% over last year, driven by price increases and a 1% rise in overall sales volume.

PepsiCo reiterated its earlier forecast that full-year revenue for 2012 will be 5% less than last year.

Yesterday, PepsiCo’s traditional soft-drink rival Coca-Cola (NYSE:KO) reported higher earnings in line with analysts’ predictions, but fell narrowly short of estimates on revenue that inched up 1% compared to last year.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/pepsico-tops-q3-forecasts-on-lower-earnings/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.