Benzinga | Oct 5, 2021 10:15AM EDT

PepsiCo Q3 Earnings Top Estimates

* PepsiCo Inc (NASDAQ:PEP) reported third-quarter FY21 sales growth of 11.6% year-on-year, to $20.19 billion, beating the analyst consensus of $19.39 billion. Organic revenue growth was 9.0% for the quarter.

* Net revenue from Frito-Lay North America increased 6% Y/Y, Quaker Foods North America rose 2%, and PepsiCo Beverages North America climbed 7%.

* Latin America sales rose 27% Y/Y, Europe sales grew 9%.

* The gross profit increased 8.7% Y/Y to $10.8 billion, and the profit margin fell 145 basis points Y/Y to 53.5%.

* The operating margin was 15.6%, and operating income for the quarter rose 4.9% to $3.2 billion.

* The company held $6.6 billion in cash and equivalents as of September 4, 2021. Net cash provided by operating activities for the nine months totaled $6.6 billion.

* Adjusted EPS of $1.79 beat the analyst consensus of $1.73.

* Outlook: PepsiCo raised the FY21 organic revenue growth outlook to 8% (previous outlook 6%).

* PepsiCo sees at least 11% core constant currency EPS growth (prior 11%) and at least 12%core EPS growth (previous guidance of 12%).

* The assumption implies 2021 core EPS of at least $6.20 versus the consensus of $6.24.

* Price Action: PEP shares are trading higher by 0.16% at $150.44 on the last check Tuesday.