Pepsi stock was down on Tuesday despite reporting an earnings beat for the third quarter of 2018.
Pepsi’s (NASDAQ:PEP) earnings report for the third quarter of the year includes earnings per share of $1.59. This is an increase over the company’s earnings per share of $1.48 reported in the same period of the year prior. It also comes in above Wall Street’s earnings per share estimate of $1.57 for the quarter, but couldn’t keep Pepsi stock from dropping.
Net income reported by Pepsi for the third quarter of 2018 came in at $2.51 billion. This is better than the food and beverage company’s net income of $2.16 billion reported in the third quarter of 2017.
During the third quarter of the year, Pepsi reported operating income of $2.84 billion. The company’s operating income reported during the same time last year was $2.92 billion.
Pepsi also reported revenue of $16.49 billion for the third quarter of 2018. This is up from the company’s revenue of $16.24 billion that was reported in the third quarter of the previous year. It also beat out analysts’ revenue estimate of $16.36 billion for the period, but wasn’t able to keep Pepsi stock up today.
Despite the strong earnings for the third quarter of the year, Pepsi is being conservative with its 2018 guidance. The company says it is expecting earnings per share of $5.65 for the year. This is likely what is keeping Pepsi stock down today as Wall Street is looking for earnings per share of $5.69 for 2018.
PEP stock was down 1% as of noon Tuesday and is down 6% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.