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Home>Pepsi's stock gains after profit beat offsets sales miss

Pepsi's stock gains after profit beat offsets sales miss

Pepsi's stock gains after profit beat offsets sales miss

10/04/2017

Shares of PepsiCo Inc. (PEP) edged up 0.5% in premarket trade Wednesday, after the beverage and snack giant beat fiscal third-quarter profit expectations, which offset a sales miss and a lowered sales growth outlook. Net income for the quarter to Sept. 9 rose to $2.14 billion, or $1.49 a share, from $1.99 billion, or $1.37 a share, from the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.48, above the FactSet consensus of $1.43. Revenue increased to $16.24 billion from $16.03 billion, but missed the FactSet consensus of $16.35 billion. Frito-Lay North America sales increased 3% to $3.79 billion, missing the FactSet consensus of $3.83 billion, while North America beverages sales fell 3% to $5.33 billion, below expectations of $5.50 billion. 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 $5.23, above the FactSet consensus of $5.16. The stock has lost 5.5% over the past three months, while the SPDR Consumer Staples Select Sector ETF (XLP) has slipped 1.7% and the S&P 500 has gained 4.4%.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

10-04-17 0700ET

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