PepsiCo Tops Q3 Forecasts on Lower Earnings

by Christopher Freeburn | October 17, 2012 10:08 am

PepsiCo (NYSE:PEP[1]) announced on Wednesday that it earned $1.9 billion during the third quarter[2], 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.

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[3]) reported higher earnings in line with analysts’ predictions[4], but fell narrowly short of estimates on revenue that inched up 1% compared to last year.

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