Investing.com — PepsiCo, Inc. reported third-quarter earnings that beat analyst expectations, but revenue fell short of estimates 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 revenue growth forecast.
PepsiCo (NASDAQ:PEP) posted adjusted earnings per share of $2.31 for the third quarter, surpassing the analyst consensus of $2.29. However, revenue came in at $23.32 billion, missing the $23.9 billion estimate. The company's stock was down 1% following the announcement, reflecting investor concerns over the revenue miss.
Chairman and CEO Ramon Laguarta commented on the results, stating, "Our businesses remained resilient in the third quarter, despite subdued category performance trends in North America, the continued impacts related to certain recalls at Quaker Foods North America and business disruptions due to rising geopolitical tensions in certain international markets."
PepsiCo revised its 2024 organic revenue growth outlook, now expecting a low-single-digit increase compared to the previous forecast of approximately 4%. Despite the lowered revenue guidance, the company maintained its projection for at least 8% core constant currency EPS growth for the full year.
Laguarta emphasized the company's focus on cost management, stating, "We will focus on tightly managing our costs to better align with the subdued growth environment that we are currently operating in."
For fiscal year 2024, PepsiCo anticipates core earnings per share of at least $8.15, slightly above the analyst consensus of $8.14. This guidance implies a 7% increase compared to the 2023 core EPS of $7.62.
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