PepsiCo Inc (NYSE:PEP) shares gained in premarket trade on Wednesday after the company’s third quarter profit expectations beat market's consensus.
The beverage and snack giant’s net income for the quarter to September 9 rose to US$2.14bn, or US$1.49 a share, from US$1.99bn, or US$1.37 a share, from the same period a year ago.
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Excluding non-recurring items, adjusted earnings per share came to US$1.48, above market consensus for US$1.43, the company said in a statement.
Revenue increased to US$16.24bn from US$16.03bn, but it missed Wall Street’s consensus of US$16.35bn.
2017 sales growth expectations lowered
The company said Frito-Lay North America sales rose by 3% to US$3.79bn, also falling below market consensus of US$3.83bn, while North America beverages sales fell 3% to US$5.33bn, below expectations of US$5.50bn.
The company lowered its 2017 sales growth outlook to about flat from a year, compared with its previous estimate of 3% growth.
Adjusted EPS is now expected to be US$5.23, above Wall Street’s consensus of US$5.16.
In premarket trade, its shares rose 1.95% a US$107.00.