Shares of PepsiCo (PEP) are up 2% after the beverage and snack company reported third-quarter financial results that beat Wall Street forecasts and raised its forward guidance.
The maker of Pepsi and Mountain Dew soft drinks reported Q3 earnings per share (EPS) of $2.24 U.S. and revenue of $23.45 billion U.S.
Analysts who track the company’s progress had expected a profit of $2.15 U.S. a share and revenue of $23.41 billion U.S.
Looking ahead, the company, which also makes Lay’s potato chips, Quaker oatmeal, and Gatorade sports drink, said that it now expects its annual earnings per share to rise 13%, up from previous guidance of 12% growth.
The company reiterated previous guidance for a 10% increase in its full-year revenue.
PepsiCo highlighted that Gatorade saw double-digit revenue growth in Q3, while its Quaker Foods division gained market share in key categories such as pancake mix and syrup.
PepsiCo has been raising prices to help offset inflation, which has weakened demand for its beverage products in recent quarters.
However, the company said that it plans to relaunch Mountain Dew Baja Blast, a favourite flavour among consumers that is currently only available through a deal at Taco Bell. The revamp could help to reinvigorate beverage sales.
PepsiCo’s stock is flat (down 0.28%) over the last 12 months and trading at $161.36 U.S. per share.