PepsiCo (NASDAQ:PEP) saw its shares skyrocket in price Wednesday, after the food and beverage giant hiked its forecast for the year Wednesday. Higher prices helped lift the company’s revenue for the third quarter.
For the quarter ended Sept. 3, PepsiCo said revenue rose 9% from a year ago to $21.97 billion, topping Wall Street expectations. The increase came despite volume declines in some of the company’s units, including its Frito-Lay North America division.
PespiCo CEO Ramon Laguarta said the summer helped drive impulse purchases, which have a higher price per liter.
“The consumer is still very healthy in terms of our particular category,” Laguarta said during the company’s earnings call Wednesday. “Our brands are being stretched to higher price points and the consumers are following us.”
Earnings per share came in at $1.97 adjusted vs. $1.84 expected, on revenue of $21.97 billion vs. $20.84 billion expected.
For 2022, the company now expects organic revenue growth of 12%, up from 10%. It expects core constant currency earnings per share growth of 10%, up from 8%.
For the period ended Sept. 3, PepsiCo’s net income was $2.7 billion, up from $2.22 billion a year ago. Total revenue rose to $21.97 billion, up from $20.19 billion a year ago.
PepsiCo has previously said it expected its costs to continue rising in the second half of this year. In response, the company has said it was accelerating its cost management initiatives, including using smaller sizes for its variety packs.
PEP shares zoomed $6.37, or 3.9%, to $168.96.