PepsiCo raises its revenue forecast as earnings exceed expectations despite higher costs

PepsiCo reported quarterly earnings and revenue that exceeded analyst expectations on Tuesday, as consumers paid more for Doritos, Quaker oatmeal, and Gatorade.

The company rised its full-year organic revenue growth forecast following its strong performance. In premarket trading, the company's shares were unchanged. Here's how the company's results compared to what Wall Street expected, according to a Refinitiv poll of analysts:

• Earnings per share (adjusted): $1.29 vs. $1.23 expected
• Revenue: $16.2 billion, compared to the expected $15.56 billion

Pepsi reported $4.26 billion in net income attributable to the company in the first quarter, or $3.06 per share, up from $1.71 billion, also $1.24 per share, a year ago.

The food and beverage conglomerate reported a $193 million after-tax impairment charge as it attempts to discontinue or reposition some of its juice also dairy brands in Russia. The charge reduced earnings by 14 cents per share.

Pepsi joined a slew of other Western countries in suspending some of its Russian operations in March, but it didn't go as far as rival Coca-Cola in stopping sales entirely. Pepsi generates roughly 4% of its annual revenue in Russia, making it one of the few markets outperforming Coca-Cola.

Excluding the sale of its juice business, the Russian impairment charge, and other items, the company earned $1.29 per share, exceeding the $1.23 per share expected by Refinitiv analysts polled.

Net sales increased 9.3 percent to $16.2 billion, exceeding estimates of $15.56 billion. Organic revenue increased by 13.7 percent in the third quarter, owing primarily to higher prices.

The company's North American beverage business increased volume by 3%. In addition, Pepsi's first foray into alcohol.

Frito-Lay North America's volume increased by only 1% in the quarter, despite the segment's organic revenue rising by 14%. According to the company, Doritos, Lay's, Ruffles, and Cheetos all saw double-digit revenue growth.