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PepsiCo is so bullish on its product pipeline and its ability to pass price increases to tackle pesky inflation, that it did something unusual on Tuesday.
The beverage and snack giant – generally cautious about how it guides the streets – took a first stab at its forecast for the next 15 months when it released its third quarter results on Tuesday.
“Normally we only talk about the following year in February [earnings]. Given the type of open questions that arose due to all the volatility, we made the decision to provide investors with some best possible clarity for next year. We expect to see mid single digit revenue [growth] and EPS in constant base currencies at high digits [growth]. We think this will be a tremendous result on top of what has been a really, really strong 2021, ”Hugh Johnston, vice president and chief financial officer of PepsiCo, said on Yahoo Finance Live.
PepsiCo shares rose nearly 2% on Tuesday morning, and the stock quickly climbed on the Yahoo Finance Trending Ticker page.
Here’s how PepsiCo performed against Wall Street analyst estimates:
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Net revenue: $ 20.19 billion versus $ 19.38 billion
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Organic revenue growth: + 9% against + 6.3%
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Diluted EPS: $ 1.79 vs. $ 1.74
The company fueled its bullish stock record with a strong third quarter in the face of the unpredictable COVID-19 pandemic and intense inflationary forces.
PepsiCo delivered organic revenue growth across all segments, with a 20% increase in its Africa / Middle East region. Core operating profits in constant currencies – a key metric for PepsiCo – grew 47% in Latin America, 52% in Africa / Middle East and 16% in Asia.
The company raised its forecast for organic revenue growth for the full year to 8%, from 6%. Constant currency profits rise “by at least” 11%, compared to a previous forecast of 11%.
Brian Sozzi is an editor and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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