Pepsi Stock Price Edged Higher on Upbeat Q3 Earnings Results

Key points:
Pepsi stock price edged higher on upbeat Q3 earnings results.
The multinational company’s revenues beat expectations.
In addition, the company raised its full-year earnings forecast.

The PepsiCo, Inc. (NASDAQ: PEP) stock price edged 2% higher after its Q3 earnings results were released during the premarket session. The multinational’s revenues surged to $21.97 billion, beating analysts' consensus estimates of $20.84 billion.

Investors cheered the results as the multinational beverage, food and snacks company raised its 2022 core EPS growth estimates from 8% to 10%. The company also expects to generate 12% organic revenue growth compared to its earlier estimate of 10%.

Also read: The Five Best Growth Stocks To Watch In 2022.

Pepsi revealed that it organically grew its revenues by 16%, easily surpassing analysts' 9.1% consensus estimate. The company’s North American business was the main growth driver as its Frito-Lay North America and PepsiCo Beverages North America delivered impressive figures.

Investors cheered that PepsiCo still intends to return $7.7 billion to its shareholders, comprised of $6.2 billion in dividends and $1.5 billion in share repurchases. In addition, Pepsi will host a live Q&A session with analysts and investors at 8:15 AM Eastern Time.

Ramon Laguarta, PepsiCo’s Chairman and CEO, said: “We are very pleased with our results for the third quarter as our global business momentum remains strong. Given our year-to-date performance, we now expect our full-year organic revenue to increase 12% (previously 10%) and core constant currency earnings per share to increase 10% (previously 8%).”

The company’s management board noted that it continued to gain market share in savory, salty, and sports drinks markets within the United States and in important international markets.

Pepsi continues to develop innovative packaging and flavors across its product portfolio to meet the evolving tastes of consumers and society at large. The company also expanded its portfolio of zero-sugar products and other nutritious, convenient foods.

The firm has implemented an efficient cost-saving program spearheaded by its employees, who are encouraged to act as owners and treat all costs as investments. As a result, the company is making good progress and expects to become more efficient.

*This is not investment advice.

Pepsi (PEP) stock price chart.