PepsiCo Reports Mixed Financial Results And Lowers Guidance - InvestingChannel

PepsiCo Reports Mixed Financial Results And Lowers Guidance

Beverage and snack giant PepsiCo (PEP) has reported mixed financial results for this year’s third quarter and lowered its forward guidance.

The Harrison, New York-based company announced earnings per share (EPS) of $2.31 U.S. versus $2.29 U.S. that had been expected among analysts.

Revenue in the quarter totaled $23.32 billion U.S., which fell short of Wall Street estimates that had called for $23.76 billion U.S. Sales were down 0.6% from a year earlier.

The company blamed the mixed results on weaker-than-expected sales of its signature soft drinks and snacks that include Pepsi, Mountain Dew, and Lay’s potato chips.

Specifically, PepsiCo said that its revenue was impacted by slow consumer sales, a product recall in its Quaker Foods business, and disruptions due to geopolitical conflicts.

Looking ahead, PepsiCo lowered its full-year revenue outlook for a second straight quarter.

Management said they now expect sales to grow in a low single-digit range throughout the company’s current fiscal year. It had previously forecast 4% revenue growth.

The stock of PepsiCo declined 1% immediately after the company’s latest financial results were made public. Year-to-date, the stock is down 3% and trading at $167.21 U.S. a share.

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