PepsiCo Inc. (NYSE: PEP) reported third-quarter 2016 results before markets opened Thursday. The snack food and beverage company posted core (adjusted) diluted earnings per share (EPS) of $1.40 on revenues of $16.03 billion. In the same period a year ago, the company reported EPS of $1.35 on revenues of $16.33 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.32 and $15.83 billion in revenues.

On a GAAP basis, first-quarter EPS totaled $1.37 and net revenue fell 1.9% as a result of currency translation effects and deconsolidation in Venezuela.

For 2016, Pepsi raised its forecast for adjusted EPS growth from 9% to 10%. Core earnings per share are forecast at $4.78, seven cents higher than the prior report. The consensus estimate had called for 2016 EPS of $4.76. Pepsi now expects a negative impact of around 5% on adjusted EPS due to currency exchange transactions and 2% due to Venezuelan deconsolidation.

The company forecasts organic revenue to grow by 4% this year. Free cash flow is targeted at over $7 billion on operating cash flow of more than $10 billion, and capital spending is forecast at $3 billion for the year. These estimates are unchanged.

Pepsi plans to pay out about $4 billion in dividends this year ($3.01 annual rate) and buy back about $3 billion in stock.

Operating profit rose 5% on a non-GAAP basis, with 8% growth in the North American beverage segment and 20% growth in the Quaker foods segment. North American beverage sales rose 10%.

CEO Indra Nooyi said:

We are pleased with our results for the third quarter and year to date. We are executing our strategy well and managing what is in our control. Our product portfolio, geographic mix and capability centers are enabling us to deliver balanced revenue and productivity. Based on our year-to-date performance and our outlook for the fourth quarter, we are raising our full-year core constant currency EPS growth objective.

PepsiCo’s shares traded up about 2.4% in premarket trading Thursday to $107.38, in a 52-week range of $92.53 to $110.94. Thomson Reuters had a consensus 12-month price target of $118.27 before this report.

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