PepsiCo’s announced its third-quarter earnings, beating expectations with explosive growth, particularly in those international markets. The number is an earnings beat for the company, which reported earnings of $2.29 per share, beating Wall Street expectations of $2.26 per share. Additionally, PepsiCo’s net sales increased by 2.6%, reaching $23.94 billion, exceeding analysts’ projections of $23.83 billion.
That’s the bright spot, but the company’s net income was down to $2.6 billion, or $1.90 per share. This is down from $2.93 billion during the same quarter last year. This drop signals a deeply adverse market landscape as the industrial giant continues to wrestle with more subdued demand for its wares. That was down from adjusted earnings per share of $2.13 one year earlier.
PepsiCo’s revenue growth was significantly supported by its international markets that have proven resilient, even as global consumer trends remain volatile. The firm is expecting that its underlying constant currency EPS will be flat from last year. On top of that, PepsiCo now projects organic revenue increasing by a low single-digit percentage over the long term.
In reaffirming its full-year outlook, PepsiCo aims to navigate the current landscape effectively while focusing on maintaining profitability and market presence. The company’s leadership announced that Walmart U.S. CFO Steve Schmitt will succeed Pepsi’s current Chief Financial Officer, further indicating a shift in executive management as it prepares for future challenges.