What happened
Shares of the large food and beverage company PepsiCo (PEP -0.19%) traded roughly 4.25% higher as of 12:51 p.m. ET today after the company reported better-than-expected earnings in the third quarter of the year and raised its guidance.
So what
PepsiCo reported third-quarter earnings of $1.95 per share, which is $0.11 better than the consensus estimate for the quarter. Revenue of $21.97 billion also beat estimates, by $1.13 billion.
In an earnings statement, CEO Ramon Laguarta said, "Our strong results demonstrate that the investments we have made toward becoming an even Faster, even Stronger, and even Better company with pep+ at the center of everything we do are working."
PepsiCo also raised its full-year guidance for fiscal year 2022, which ends on the last Saturday of each December. The company now expects to generate 12% organic revenue growth, up from previous estimates of 10%. It's forecasting 10% growth in constant-currency earnings per share (EPS), which is up from previous guidance of 8%. And it expects to deliver $6.73 EPS for the full year, which would be up 7.5% from the fiscal year 2021.
The company maintained its capital distribution plans of total dividends of $6.5 billion and share repurchases of $1.5 billion.
Now what
In a quarter when many investors expect to see corporate earnings start to weaken, PepsiCo not only beat estimates but also raised guidance, showing its resiliency, which bodes well for the stock.
