PepsiCo Shares Gain as Firm Raises Outlook for the Year

PepsiCo's shares rose in pre-market trade in New York after the firm raised its full-year earnings forecast and said snack sales helped its quarterly profit beat expectations.

PepsiCo's stock gained 1.39% to $95.25 ahead of the NYSE opening bell after the company raised its full-year growth forecast for earnings per share to 9%, from 8%, before factoring in currency impacts.

PepsiCo, which sells Frito-Lay snacks alongside beverage brands like Mountain Dew and Tropicana, raked in a net income of $2bn, or $1.32 per share, during the third quarter ended 6 September, up from $1.9bn, or $1.23 per share a year ago.

Revenue, excluding the impact of currency translation and changes to its business, grew 3.1%.

Overall revenue, which includes currency impacts, stood at $17.22bn, up 2% from a year ago, the company said.

Chairman and CEO Indira Nooyi said in a statement: "We delivered good third quarter results in the face of an ongoing challenged macroeconomic environment driven by increasing volatility in the emerging markets and continued sluggish consumer demand in developed markets.

"Our organic revenue grew 3% and we achieved positive effective net pricing through strong price/pack revenue management. Together with our relentless focus on productivity, this translated to both gross margin and operating margin expansion."

"We achieved these results because our brands are strong, our product portfolio is on-trend, our geographic footprint is broad and diverse, and we are executing well in the marketplace..." Nooyi added.