PepsiCo (PEP - Get Report) released earnings on Tuesday, Oct. 2.

PepsiCo announced earnings per share of $1.75, which beat analyst expectations of $1.57.

"We continued to see very strong operating performance from our international divisions, propelled by developing and emerging markets," said outgoing CEO Indra Nooyi. "On the strength of our year-to-date results, we have revised upward our full-year organic revenue growth target."

In morning trading, PepsiCo was down 1% to $109.46.

TheStreet's Jim Cramer spoke with Hugh Johnston, the CFO, he assured Jim that it was the dollar, a purely cyclical headwind - meaning right now we are in a strong dollar cycle. It was not what many investors are worried about: a secular headwind related to health worries, a thesis, for example, about millennials wanting to avoid sugary drinks and salty snacks because their bodies are their temples.

In today's RealMoney column, Jim Cramer: Know Which Way the Wind Blows Before You Pick Stocks, Johnston told Cramer that aluminum costs have gone up for cans and transportation costs have risen because of labor costs, related to drivers and enforcement of safety rules that cut down the number of hours drivers can stay on the road.

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TheStreet's Martin Baccardax reported on the earnings and wrote, "however, Pepsi shaved a few pennies from its full-year earnings per share forecast, with a new target of $5.65 each, narrowly shy of the $5.69 consensus, sending the stock lower in premarket trading."

PepsiCo is Real Money's Stock of the Day

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