PepsiCo 3Q Profit, Revenue Top Analyst Estimates

Reuters

PepsiCo reported a better-than-expected quarterly profit as its commodity costs fell and demand for its snacks and beverages rose in North America.

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The company also raised its target for 2015 adjusted earnings growth to 9 percent from 8 percent, on a constant-currency basis.

PepsiCo's shares rose 3 percent in premarket trading on Tuesday.

Revenue from the company's North America beverages business rose 4 percent in the third quarter, accounting for a third of its total revenue, while revenue from its snacks business in the region increased 1 percent.

This is the first time PepsiCo has broken out its North America quarterly beverage sales numbers.

The net income attributable to PepsiCo fell to $533 million, or 36 cents per share, in the quarter ended Sept. 5 from $2.01 billion, or $1.32 per share, a year earlier.

PepsiCo said it took a charge of $1.4 billion, or 92 cents per share, as it changed its accounting method for Venezuela operations.

Excluding items, the company earned $1.35 per share.

Net revenue fell 5.2 percent to $16.33 billion, the fourth straight quarter of decline.

Analysts on an average had expected a profit of $1.26 per share and revenue of $16.15 billion, according to Thomson Reuters I/B/E/S.

PepsiCo's shares were trading at $98.71 before the bell.

(Reporting by Sruthi Ramakrishnan and Subrat Patnaik in Bengaluru; Editing by Kirti Pandey)

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