PepsiCo Inc (NASDAQ:PEP) announced better-than-expected first-quarter earnings before the bell on Thursday.
The beverage giant reported earnings of US$0.96 per share on revenue of US$12.56bn compared with US$0.94 EPS on revenue of US$12.05bn in the previous year’s first quarter.
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The New York-based company beat Wall Street estimates of US$0.93 EPS on revenue of $12.4bn.
Rival Coca-Cola Co. (NYSE:KO) reported its positive first-quarter results on Tuesday. Despite a declining demand for soda, the company saw volume growth thanks to its revamped Diet Coke products.
While the classic Pepsi soda is a mainstay and a profit-driver in the company’s product line, Pepsi has introduced healthier alternatives to soda such as Bubly sparkling water and Kevita, a line of fermented probiotic and kombucha beverages.
“We continued investing in and growing share in a number of faster-growing, future-facing categories. However, competitively we recognize the need to step up investments in core carbonated soft drinks, which we intend to responsibly do," said CEO Indra Nooyi.
Shares of the company were down slightly in pre-market trading to US$100.96.