Q3 earnings season extravaganza was kicked off by an iconic American acyclical behemoth. PepsiCo (PEP) shares traded higher by 3.7% on Thursday premarket after the soft drink giant reported upbeat Q3 sales and earnings and raised its full-year guidance.

PepsiCo reported 9% sales growth in Q3 and estimated its full-year organic revenue growth at 12%, significantly higher than previous guidance of 10%. The company also expects core constant currency earnings per share growth of 10% this year.

For Q3, the company posted $21.97 billion in revenue alongside $1.97 in core earnings per share, core EPS. Consensus estimate was for $20.82 billion and $1.85, respectively. A 20% jump in revenue stemmed from Frito-Lay North America (details below) and a rapidly accelerating business in Latin America were cited as key drivers of the strong performance.

More precisely, PepsiCo reported 4% North American beverage revenue growth, 15% North American Quaker Food revenue growth and 20% North American Frito-Lay snack revenue growth in the quarter. PepsiCo has also been expanding its focus on energy drinks. The company took a $550 million stake in Celsius Holdings in August and recently launched Gatorade FastTwitch.

PepsiCo's strong quarter was particularly impressive given the unfavorable foreign exchange impact on its international business due to significantly strengthened dollar. So far, PepsiCo has successfully been able to offset slumping sales volumes and pass rising costs on to customers by raising prices.

PepsiCo's strong quarter bodes well for competitor Coca-Cola Co (KO), which is expected to report on Oct. 25. Both PepsiCo and Coca-Cola shares have held up well in a difficult market so far in 2022, down just 3.2% and 6%, respectively.