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PepsiCo earnings beat Street estimates, shares rise

A shopper reaching for a bottle of Diet Pepsi soda in a grocery store in Atlanta, Georgia.
Chris Rank | Bloomberg | Getty Images
A shopper reaching for a bottle of Diet Pepsi soda in a grocery store in Atlanta, Georgia.

PepsiCo raised its full-year earnings forecast and said snack sales helped its quarterly profit beat expectations, sending its shares up more than 1 percent in premarket trading.

The company raised its full-year growth forecast for earnings per share to 9 percent from 8 percent before taking into account currency impacts.

Shares of the beverage and snack food company rose in premarket trading following the report. (Get the latest quote here.)

The company's third-quarter earnings excluding items rose to $1.36 per share from $1.24 a share in the year-earlier period.

Earlier in October, PepsiCo announced Pepsi True, a naturally sweetened soda available through Amazon.com. In the summer, Coca-Cola had released a new drink with the same natural sweetener in the United States.

During the 10th annual Clinton Global Initiative in September, PepsiCo joined Coca-Cola and Dr. Pepper in pledging to cut American calorie consumption in sugary drinks by 20 percent by 2025.

Revenue increased to $17.22 billion from $16.91 billion a year ago.

Wall Street had expected Pepsi to deliver earnings of $1.29 on revenue of $17.09 billion, according to a poll by Reuters.

"We delivered good third quarter results in the face of an ongoing challenged macroeconomic environment driven by increasing volatility in the emerging markets and continued sluggish consumer demand in developed markets," said Chairman and CEO Indra Nooyi.

Revenue, excluding the impact of currency translation and changes to PepsiCo's business, grew 3.1 percent. Overall revenue, which includes currency impacts, was $17.2 billion, up 2 percent from a year earlier.

Activist investor Nelson Peltz's Trian Fund Management urged the company recently to split its more successful snack division from its sluggish beverage business.

Reuters contributed to this report