(RTTNews) - Snack and beverage giant PepsiCo Inc. (PEP) on Thursday reported a 16 percent decline in net income for the third quarter, reflecting higher income tax provisions, despite revenue growth.
However, both adjusted earnings per share and net revenues for the quarter beat analysts' estimates. The company also reaffirmed its earnings and organic revenue growth outlook for the full-year 2019.
"We are pleased with our results for the third quarter. While adverse foreign exchange translation negatively impacted reported net revenue performance, organic revenue growth was 4.3% in the quarter," said Chairman and CEO Ramon Laguarta.
For the third quarter, net income attributable to the company declined to $2.10 billion or $1.49 per share from $2.50 billion or $1.75 per share in the year-ago quarter.
Core earnings for the quarter were $1.56 per share, compared to $1.59 per share in the year-ago quarter. On average, 20 analysts polled by Thomson Reuters expected the company to earn $1.50 per share for the quarter.
Net revenue for the quarter grew 4.3 percent to $17.19 billion from $16.49 billion last year. Analysts expected revenues of $16.93 billion. Organic revenue growth for the quarter was also 4.3 percent.
In the quarter, Frito-Lay North America, Quaker Foods North America, Latin America, PepsiCo Beverages North America, Europe, Sub-Saharan Africa and Asia, Middle East and North Africa reported higher revenues. "We are making good progress against our strategic priorities and our businesses are performing well as we continue to make the necessary investments in our capabilities, brands, manufacturing and go-to-market capacity to propel our future growth," Laguarta added.
Looking ahead to fiscal 2019, PepsiCo continues to project core earnings per share of $5.50, representing a 3 percent decrease compared to 2018 core earnings per share of $5.66. The Street expects earnings of $5.52 per share for the year.
However, the company now expects to meet or exceed its full-year organic revenue growth target of 4 percent.
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