X
<

PepsiCo’s Mixed Fiscal 3Q17 Results: What You Should Know

PART:
1 2 3 4 5 6 7 8
Part 2
PepsiCo’s Mixed Fiscal 3Q17 Results: What You Should Know PART 2 OF 8

Why PepsiCo’s Fiscal 3Q17 Revenue Lagged Analyst Expectations

Revenue lags estimates

Beverage giant PepsiCo (PEP) delivered revenue of $16.2 billion in fiscal 3Q17, which ended on September 9, 2017. It lagged the consensus analysts’ revenue estimate of $16.3 billion. It exceeded analysts’ revenue estimate in the first two quarters of fiscal 2017.

Why PepsiCo’s Fiscal 3Q17 Revenue Lagged Analyst Expectations

Interested in KO? Don't miss the next report.

Receive e-mail alerts for new research on KO

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

What impacted 3Q17 revenue?

PepsiCo’s revenue rose 1.3% on a year-over-year basis in fiscal 3Q17. Adverse currency fluctuations impacted its top-line growth by one percentage point. Excluding the impact of currency headwinds and structural changes, PepsiCo’s organic revenue rose 1.7% in the quarter, mainly due to higher pricing.

Its fiscal 3Q17 revenue growth was lower than the 2.0% growth in fiscal 2Q17 but an improvement over the 1.9% fall in fiscal 3Q16.

North America Beverages, the company’s largest segment, had a dismal quarterly performance, which negatively impacted overall revenue growth. The company cited unfavorable weather and a slowdown in its convenience-store channel as reasons for the segment’s lower-than-expected revenue. We’ll look at the performances of the company’s segments in detail in the next part of this series.

Rival Coca-Cola (KO) is scheduled to announce its 3Q17 results on October 25, 2017. Analysts currently expect Coca-Cola’s revenue to fall ~18.0% to $8.7 billion.

Change in guidance

Given the challenging business conditions, PepsiCo now expects its fiscal 2017 organic revenue growth to be about 2.3%. It previously expected organic revenue growth of at least 3.0%.

PepsiCo now expects currency fluctuations to have a one percentage point impact on its reported net revenue growth compared to the previous estimate of two percentage points.

X

Please select a profession that best describes you: