PepsiCo, Inc. (NYSE: PEP) on Wednesday reported third-quarter earnings that beat analysts’ estimates, but sales in North American were disappointing.
The soda maker said third quarter revenue rose 1.3 percent to $16.24 billion. Net income rose 7.6 percent to $2.14 billion, or $1.49 per share. Excluding certain items, the company earned $1.43 per share.
Analysts polled by Thomson Reuters had estimates earnings of $1.43 per share on revenue of $16.24 billion.
Beverage sales in North America was $5.33 billion in the quarter ended Sept. 9, down from $5.52 billion a year earlier. The company said the disappointing North American sales was due to shift in media spending and shelf space allocation
"Overall, our businesses performed well in the third quarter in what continues to be a challenging
environment," said Chairman and CEO Indra Nooyi. "Each of our operating sectors delivered results in line with or ahead of our expectations, with the exception of North America Beverages where revenues declined following two consecutive years of very strong third-quarter growth."
Pepsi shares fell nearly 2 percent in premarket trading, but it bounced back later.
The company now expected full-year organic revenue growth to be 2.3 percent, while it rise its earnings forecast by 10 cents to $5.23 per share.