How great does an ice-cold Pepsi sound right about now? You can probably buy some Pepsi stock this morning to get the same effect (though we prefer coffee to cola any morning of the week).

Earlier, PepsiCo (NYSE: PEP) reported a 5 percent drop in third-quarter 2012 sales to $16.65 billion, from $17.58 billion in the same period last year. Net income slipped 5 percent as well, to $1.90 billion or $1.20 per share.

Overall, the Street was looking for revs of $16.9 billion and EPS of just $1.16. Last year, PepsiCo reported net income of $2 billion, or $1.25 per share.

According to the company, organic revs growth was 5 percent, benefiting from a 1 point increase in volume and 4 point rise in effective net pricing. Foreign exchange ebbed growth by 5 points. Structural changes, primarily refranchisings in China and Mexico, negatively impacted reported net revenue performance by 5 percentage points.

Snacks volume rose 6 percent while beverage volume was up 3 percent.

PepsiCo Americas Foods (PAF) saw a 6 percent volume increase, through operating profit dipped 1 percent. For Europe, PepsiCo said, "Core constant currency operating profit grew 3 percent in the quarter with significantly higher marketing investments and commodity cost inflation offset by productivity savings. Operating profit performance was negatively impacted by 4 percentage points due to an impairment charge associated with operations in Greece. Operating profit performance was positively impacted by 8 percentage points attributable to net favorable adjustments of certain operating items and favorable comparisons related to timing of concentrate shipments in connection with our global SAP implementation in the third quarter of 2011."

Looking ahead, PepsiCo sees a 3 point decline in FY12 EPS from FX translation. Revs growth was affirmed.

Shares are flat in early trading Wednesday.

Earnings Hot Earnings

PepsiCo, Inc. (PEP) Tops Q3 EPS by 4cOctober 17, 2012 7:01 AM