PepsiCo’s North American beverages segment rose 2% for the quarter, reversing a slump since the third quarter of 2017. Revenue in PepsiCo’s fiscal third quarter rose 1.5% to $16.49 billion, as organic revenue—which excludes acquisitions and divestitures—grew 4.9%. Analysts polled by Refinitiv expected $16.36 billion in revenue. The company raised its fiscal 2018 organic revenue-growth guidance Tuesday to at least 3% from the 2.3% it previously guided.
Overall the maker of Mountain Dew, Gatorade and Doritos posted a profit of $2.5 billion, or $1.75 a share, compared with $2.14 billion, or $1.49 a share, a year earlier. Excluding special items, PepsiCo earned $1.59 a share, beating analysts’ expectations of $1.57 a share on an adjusted basis.
The snacks and soda company has been under pressure to restructure its U.S. beverage operations after shifting too much marketing money and shelf space to new brands in hybrid categories. PepsiCo has also continued working to diversify its portfolio. In August, the company agreed to buy seltzer-machine producer SodaStream International Ltd. for $3.2 billion. Shares in PepsiCo fell 1% to $109.50 in premarket trading Tuesday.
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