Pepsico Inc Q3 Profit Increases, beats estimates

Pepsico Inc (PEP) reported a profit for its third quarter that increased from last year and beat the Street estimates.

The company’s earnings totaled $3.09 billion, or $2.24 per share. This compares with $2.70 billion, or $1.95 per share, in last year’s third quarter.

Excluding items, Pepsico Inc reported adjusted earnings of $3.11 billion or $2.25 per share for the period.

Analysts on average had expected the company to earn $2.15 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 6.7% to $23.45 billion from $21.97 billion last year.

Pepsico Inc earnings at a glance (GAAP) :

-Earnings (Q3): $3.09 Bln. vs. $2.70 Bln. last year.
-EPS (Q3): $2.24 vs. $1.95 last year.
-Analyst Estimate: $2.15
-Revenue (Q3): $23.45 Bln vs. $21.97 Bln last year.

-Guidance:
Full year EPS guidance: $7.54

PepsiCo Q3 Results Climb, Top Estimates; Lifts FY23 Earnings View; Sees Growth In FY24

PepsiCo, Inc. (PEP) reported Tuesday that its third-quarter net income attributable to the company grew to $3.09 billion from last year’s $2.70 billion. Earnings per share improved to $2.24 from prior year’s $1.95.

Core earnings per share for the quarter was $2.25. On average, 15 analysts polled by Thomson Reuters expected earnings of $2.15 per share for the quarter. Analysts’ estimates typically exclude special items.

Net revenue for the quarter was $23.45 billion, up 6.7 percent from last year’s $21.97 billion. The Street expected revenues of $23.43 billion for the quarter.

Looking ahead for fiscal 2023, the company now expects to deliver 13 percent core constant currency earnings per share growth, higher than previously expected growth of 12 percent.

The company continues to expect 10 percent organic revenue growth.

Further for fiscal 2024, the company expects to deliver results towards the upper end of its long-term target ranges for both organic revenue and core constant currency EPS growth.

The long-term target ranges for both organic revenue growth of 4 to 6 percent increase and core constant currency EPS growth of high-single digit percentage increase remain unchanged.

In pre-market activity on Nasdaq, PepsiCo shares were gaining around 2.6 percent to trade at $165.50.

Merck: KEYNOTE-671 Trial Meets Dual Primary Endpoint – Quick Facts

Merck (MRK) announced the Phase 3 KEYNOTE-671 trial investigating KEYTRUDA as a perioperative treatment regimen for patients with resectable stage II, IIIA or IIIB non-small cell lung cancer met its dual primary endpoint of overall survival. At a pre-specified interim analysis, KEYTRUDA plus chemotherapy before surgery, followed by resection and KEYTRUDA as a single agent after surgery, showed a statistically significant and clinically meaningful improvement in OS compared to neoadjuvant placebo plus chemotherapy followed by adjuvant placebo in these patients. The safety profile was consistent with that observed in previously reported studies.

Based on the data, the FDA has accepted Merck’s new supplemental Biologics License Application with a PDUFA, or target action, date of October 16, 2023.

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Haemonetics Agrees To Buy OpSens In $253 Mln All-cash Deal

Medical technology company Haemonetics Corp. (HAE) and OpSens, Inc. (OPS.TO, OPSSF.PK) announced Tuesday that they have entered into a definitive agreement under which Haemonetics will acquire all outstanding shares of OpSens for C$2.90 per share in an all-cash transaction representing a fully diluted equity value of approximately $253 million at current exchange rate.

OpSens offers commercially and clinically validated optical technology for use primarily in interventional cardiology. OpSens also manufactures a range of fiber optic sensor solutions used in medical devices and other critical industrial applications.

The transaction will be affected by way of an arrangement under the Business Corporations Act (Quebec). The completion of the acquisition is subject to the approval of OpSens shareholders, receipt of court and regulatory approval, as well as certain other closing conditions customary for transactions of this nature.

The transaction is expected to close by the end of January 2024. Haemonetics plans to finance this acquisition through a combination of cash and a revolving credit facility.

Gold Prices Ease After Monday Surge

Gold prices eased slightly on Tuesday after having hit over one-week highs earlier in the wake of dovish comments from Federal Reserve officials and growing concerns about the ongoing Israel-Hamas war.

The Israeli military has said it has called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.

Spot gold slipped 0.2 percent to $1,857.83 per ounce, while U.S. gold futures were up 0.4 percent at $1,871.05.

Gold rallied about 1.6 percent on Monday, its biggest single day jump in five months, as investors sought safe havens amid the Middle East conflict.

A weaker dollar and falling bond yields also offered some support following dovish Fed comments.

Federal Reserve Vice Chair Philip Jefferson said in a speech that the central bank needs to “proceed carefully to balance the risk of tightening too much.”

Fed officials Mary Daly and Lorie Logan also recently said that tighter financial conditions could limit future rate hikes.

Amid easing rate concerns, investors now look ahead to the release of U.S. CPI data and minutes of the Fed’s September monetary policy meeting this week for further direction.

A collection of speeches from ECB President Christine Lagarde, Fed’s Raphael Bostic, Christopher Waller, Neel Kashkari and Mary Daly may sway sentiment as the day progresses.