Pepsi-parent PepsiCo's stock gains after profit and revenue rise above expectations

Shares of PepsiCo Inc. gained 0.5% in premarket trade Tuesday, after the beverage and snack giant reported fiscal third-quarter profit and revenue that topped expectations. Net income for the quarter to Sept. 8 rose to $2.50 billion, or $1.75 a share, from $2.14 billion, or $1.49 a share, in the same period a year ago. Excluding non-recurring items, core earnings per share came to $1.59, above the FactSet consensus of $1.57. Revenue increased to $16.49 billion from $16.24 billion, above the FactSet consensus of $16.37 billion. Revenue for Frito-Lay North America rose 3% to $3.89 billion, just shy of the FactSet consensus of $3.92 billion, while North America beverages revenue grew 2% to $5.46 billion just miss the FactSet consensus of $5.47 billion. Quaker Foods NA revenue slipped 2% to $567 million but beat the FactSet consensus of $562 million. Looking ahead, Pepsi cut its 2018 core EPS outlook to $5.65 from $5.70, citing an expected unfavorable currency translation impact of 1 percentage point. The company raised its growth outlook for organic revenue to "at least 3%" from "at least in line" with 2017's 2.3% growth rate. Pepsi's stock has lost 7.7% year to date, while the S&P 500 has gained 9.4%.

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