PepsiCo gains after forecasting annual revenue at high end of guidance
PEP•PepsiCo expects annual revenue growth at the high end of its previous 4% to 6% forecast, while projecting core constant-currency EPS growth of 1% to 2%. Third-quarter revenue was $25.27 billion, above estimates, and core EPS rose 2% to $2.34.
1. Forecast and results
PepsiCo said it expects annual revenue at the higher end of its previous 4% to 6% forecast. It now expects annual core constant-currency EPS growth of 1% to 2%, compared with its previous projection at the lower end of a 4% to 6% range. Third-quarter net revenue was $25.27 billion, above analysts’ estimate of $24.96 billion, and core EPS rose 2% to $2.34.
2. Cost reductions
CEO Ramon Laguarta said additional structural cost reduction actions are being identified and will be implemented in the coming months. PepsiCo shares were up 2% at $125.32 in premarket trading; the stock was down 13.8% year to date as of the previous close.
