PepsiCo beats Q3 on profit and revenue but cuts full-year EPS outlook to +1-2% from +4-6%
What happened
PepsiCo reported fiscal Q3 profit of $3.05 billion ($2.23/share), up from $2.6 billion ($1.90/share) a year earlier. Adjusted EPS came in at $2.34, beating the FactSet consensus of $2.29. Net revenue rose 5.6% to $25.27 billion, ahead of the $24.95 billion Wall Street estimate, with organic revenue up 3.1%. However, management cut the full-year adjusted EPS outlook to growth of 1-2%, down sharply from the prior forecast of 4-6%, and narrowed the organic revenue outlook to roughly +3% from a previous range of +2-4%. CEO Ramon Laguarta said North America trends improved sequentially as lower net pricing spurred volume and market-share gains, and flagged more structural cost-reduction actions to be implemented in the coming months.
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Who’s affected
- PepsiCo (PEP) — the beat is near-term positive but the guidance cut is the dominant signal, likely to weigh on the stock; consumer-staples peers (Coca-Cola, Mondelez, Kraft Heinz) may face read-through selling on the cautious North America outlook.
Sources