Pepsi earnings top estimates despite higher supply chain costs, company raises revenue forecast

Earnings

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Pepsi soft drinks are displayed at a convenience store in San Francisco, California.
Justin Sullivan | Getty Images

PepsiCo on Tuesday raised its full-year forecast after its quarterly earnings and revenue topped analysts’ expectations, despite higher costs and snarls in the supply chain.

Shares of the company fell less than 1% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.79 adjusted vs. $1.73 expected
  • Revenue: $20.19 billion vs. $19.39 billion expected

Pepsi reported fiscal third-quarter net income of $2.22 billion, or $1.60 per share, down from $2.29 billion, or $1.65 per share, a year earlier.

Excluding items, the food and beverage giant earned $1.79 per share, topping the $1.73 per share expected by analysts surveyed by Refinitiv.

Net sales rose 11.6% to $20.19 billion, beating expectations of $19.39 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, climbed 9% in the quarter.

For the full year, Pepsi said it expects its organic revenue to increase by 8%, up from its prior forecast of 6% growth. The company reiterated its forecast for core constant currency earnings per share of 11% growth.

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