PepsiCo (PEP) beat analyst forecasts in their Q3 2016 earnings report. The company released their earnings before the market opened on Thursday. The company’s stock is up 1.6% in early morning trade as a result.
The company’s report includes:
EPS of $1.40 and $16 Billion in Revenue
Pepsi’s earnings per share, excluding one-time items, reached $1.40 compared to projections of $1.32. Revenue outpaced projections of $15.84 billion, with the company posting $16.0 billion in revenue on the quarter.
The company’s products have been diversified, with a large portion of growth being in the health food sector.
Healthier Foods Revive Sales
The company is known for their soft drinks, but Pepsi has moved into healthier options in an effort to lure in new customers. The company’s results were boosted by strong sales in key items: Sabra hummus, Lipton Pure Leaf Tea and Naked juices added to the company’s bottom line.
Pepsi noted that shoppers are looking for new options aside from salty chips and sodas.
Revenue Slid 1.9% Last Quarter
Strong sales still led to a 1.9% drop in revenue on the quarter. The company stated that currency played a major role in the company’s revenue slide, which was expected to be much worse, according to analysts.
Stable currency would have helped revenue grow 4.2%, according to the company.
Frito-Lay Had a Strong Quarter
The company’s Frito-Lay brand had a strong quarter, with sales of $3.68 billion. The sales equate to a 3.4% uptick on the quarter. Revenue for the company’s North America Beverages unit grew 2.9% to $5.52 billion on the quarter.
The company’s other units fell across the board except for three divisions: Asia, North Africa and the Middle East. These three units boasted revenue increases of less than 1%.
PepsiCo has boosted savings and increased productivity thanks to an extra work week in the fiscal year. The savings will be used to further invest in the company’s core operations.
