Shares of PepsiCo Inc.
rose 2.5% in premarket trading Tuesday, after the beverage and snack giant reported third-quarter earnings that topped consensus and raised its full-year guidance. Net income rose to $3.092 billion, or $2.24 a share, from $2.702 billion, or $1.95 a share, in the same period a year ago.
Excluding nonrecurring items, core earnings per share of $2.25 were ahead of the FactSet consensus of $2.15. Revenue grew to $23.453 billion from $21.971 billion, also ahead of the FactSet consensus of $23.413 billion. “We are pleased with our performance as our businesses and associates displayed tremendous agility and resilience across geographies and categories in an evolving and dynamic environment,” Chief Executive Ramon Laguarta said in a statement. Wedbush analysts said revenue growth was “completely price-led” with 11 points of price/mix offset by a low-single-digit volume decline. “We note that five of PepsiCo’s seven segments realizedoperating margin expansion with four segments delivering triple digit expansion led by Europe (280 basis points), followed by APAC (250 bps), PBNA (150 bps) and Latam (120 bps),” analysts wrote in a note to clients. Wedbush rates the stock the equivalent of buy with a 12-month price target of $195, or 21% above its current price. Revenu …