Pepsi soft drinks are displayed at a convenience store in San Francisco, California.
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PepsiCo on Thursday reported its quarterly sales grew by more than 5% as consumers bought more of its Tostitos and pancake mixes.
Shares of the company rose 2% 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: $1.66, adjusted, vs. $1.49 expected
- Revenue: $18.09 billion vs. $17.23 billion expected
Pepsi reported fiscal third-quarter net income of $2.29 billion, or $1.65 per share, up from $2.1 billion, or $1.49 per share, a year earlier.
Excluding items, the company earned $1.66 per share, beating the $1.49 per share expected by analysts surveyed by Refinitiv.
Net sales rose 5.3% to $18.09 billion, topping expectations of $17.23 billion. Organic revenue grew 4.2% in the quarter.
Both its Frito-Lay and Quaker Foods businesses reported organic revenue growth of 6%, despite economies opening up and consumers feeling more comfortable leaving their homes. Frito-Lay saw higher sales in its Tostitos, Cheetos and Doritos, while Quaker Foods’ pasta and macaroni and cheese dishes reported double-digit sales growth.
Its North American beverage unit’s organic sales rose by 3% in the quarter. Its Bubly sparkling water brand, Lipton tea and Starbucks licensed products all saw double-digit sales growth. The company also said that Bubly, Gatorade Zero and Mountain Dew Zero Sugar combined have surpassed $1 billion in sales so far this year.
Pepsi’s international business reported organic sales growth of 4%, fueled by higher demand for snacks.
The food and beverage giant also provided an outlook for the remainder of fiscal 2020. It yanked its prior forecast in late April, citing the uncertainty of the coronavirus pandemic. Pepsi is now expecting organic revenue growth of 4%, in line with its prior outlook, and core earnings per share of $5.50, down 38 cents from its original forecast.