PepsiCo’s third quarter net profit jumped to £1.78 billion.
The beverage company reported sales of £14.09 billion and earnings per share of £1.29.
The American multinational company forecasts annual earnings per share of 4.29 pounds.
PepsiCo Inc. (NASDAQ: PEP) on Thursday released its third quarter earnings reports, which were stronger than analysts had expected. PepsiCo entered into a partnership with USAID in September to empower women in agriculture.
The company’s shares traded 2% higher in pre-trade trading on Thursday. Including the price action, PepsiCo is now trading hands at 108.25 pounds per share. This compares to a price that had dropped to 81 pounds per share in March. Here is what you need to know about how to start trading on the exchange.
PepsiCo said that its third quarter net profit was £1.78 billion, or £1.29 per share. In the same quarter last year, it reported a lower net profit of £1.64 billion or £1.16 per share.
PepsiCo’s financial results for the third quarter compared to analyst estimates
According to FactSet, experts had predicted that the company would generate revenues of 13.42 billion pounds sterling in the last quarter. In terms of earnings per share, their estimate was limited to £1.16 per share. In its Thursday report, PepsiCo exceeded both estimates with higher revenues of £14.09 billion and adjusted earnings per share of £1.29 in the third quarter.
The Beverage Group’s revenue in the comparative quarter of 2019 was a lower £13.39 billion. PepsiCo’s organic revenue growth for the third quarter was an annualized 4.2%. In the previous quarter (Q2), the company had seen year-on-year revenue decline by 3.1% due to coronavirus restrictions.
The COVID 19 crisis has so far infected more than 7.4 million people in the United States and caused more than 210 thousand deaths.
For the full financial year, the U.S. multinational is now forecasting earnings per share of £4.29 compared to the £4.18 expected by FactSet. The outlook for annual organic revenue remained unchanged at 4% growth.
Other prominent figures in PepsiCo’s earnings report
Other prominent figures in PepsiCo’s financial results on Thursday include 6% year-over-year growth in organic revenue from the Frito-Lay and Quaker Foods segments. Its North American beverage business achieved annualized growth of 3% in the third quarter of the financial year.
PepsiCo performed quite well on the stock market last year with an annualized profit of more than 20%. At the time of writing, the Harrison-based company has a market capitalization of £149.50 billion and a price-earnings ratio of 28.31.