PepsiCo, Inc. (NASDAQ:PEP) rocketed after the release Thursday of third-quarter numbers.
The Harrison, New York-based beverage giant reported third quarter total revenue of $17.18 billion on Thursday, beating Wall Street forecasts for $16.93 billion.
Organic revenue — a key performance measure for the company — rose 4.3%, topping analyst forecasts for 3.4% growth. Core earnings — another closely watched measure on PepsiCo —came in at $1.56 a share versus estimates for $1.50 a share.
Performance for PepsiCo’s two key segments — North American Beverages and Quaker Foods North America — continued to deliver mixed results. Volume at Quaker Foods North America fell 1% and by 1.5% for PepsiCo North America Beverages. Core operating profits dropped 11% and 5%, respectively, for the segments.
But it was PepsiCo’s overseas businesses and the powerhouse that is Frito Lay North America that essentially made the quarter. Core operating profits rose 7% at Frito Lay, 12% in Latin America and 14% in Europe — likely reflecting the company’s efforts under new CEO Ramon Laguarta to more closely manage costs.
The company’s guidance was on the favorable side, too. It expects to meet or exceed its organic sales growth of 4% this year. Full-year core earnings are still seen dropping 3% to $5.50 a share.
The earnings beat and generally solid operating profit showings in key businesses should feed the bull case on PepsiCo that more recently, has come into question, according to those on Wall Street following the stock’s strong 22% year-to-date gain.
Shares showed some fizz, gaining $4.29, or 3.2%, out of the gate Thursday to $138.23
