Beverage and snack foods giant PepsiCo, Inc. (PEP) said Thursday that its third quarter profit rose 9% from last year, aided by lower costs amid lower revenue.
The Purchase, New York-based company reported third quarter net income of $1.72 billion, or $1.09 per share, compared with $1.58 billion, or 99 cents per share, in the year-ago period.
Revenue fell 1% from last year to $11.08 billion.
On average, Wall Street analysts expected lower profits of $1.03 per share, albeit on higher revenue of $11.25 billion.
The company was able to post higher profit despite falling revenue due to cost cuts -- selling, general, and administrative expenses fell 8% in the latest period.
PepsiCo shares rose 52 cents, or +0.85%, in premarket trading Thursday.
The Bottom Line
We have been recommending shares of PEP since July 30, when the stock was trading at $56.33. The company has a 2.94% dividend yield, based on last night's closing stock price of $61.17.
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