PepsiCo Inc (NASDAQ:PEP) delivered better-than-expected third-quarter earnings Tuesday that showed signs of growing demand for its Gatorade, cola, teas and other beverages marking a victory for Indra Nooyi on her last day at work.
For the quarter ended September 2018, the beverage giant posted earnings of $1.59 per share on revenue of $16.5 billion. The consensus earnings estimate was $1.56 per share on revenue of $16.4 billion. Revenue grew 1.5% on a year-over-year basis.
The stock for the Purchase, New York-based beverage giant was up 0.5% to 111.30 in premarket trading.
PepsiCo said it now expects 2018 earnings of approximately $5.65 a share. The company's previous guidance was earnings of approximately $5.70 per share and the current consensus earnings estimate is $5.69 per share for the year ending December 31, 2018. The company said a strong dollar will negatively impact its fiscal year earnings by one percentage point.
"We continued to see very strong operating performance from our international divisions, propelled by developing and emerging markets," Nooyi said on her last day as Pepsi's CEO. She will remain chairman until early 2019.
According to CNBC, the 16% surge in profits was a “victory for Indra Nooyi” on her last day as CEO, after years of facing pressure to sell or spin the company's beverage business as its growth has lagged that of its Frito Lay, Tostitos, Lays chips and other packaged snacks.
“While its snacks continue to command presence and sales in a crowded market, its beverages have grappled with slowing carbonated sales and competition from new upstart rivals,” reported CNBC.
“Nooyi, though, has said she believes the company is stronger with both product lines in its portfolio,” it added.
Contact Uttara Choudhury at firstname.lastname@example.org