Pepsi Tops Earnings Estimates, Stands by 2013 Outlook
PepsiCo reported better-than-expected quarterly earnings on Thursday, as price increases helped margins and the company stood by its full-year forecast.
After the earnings announcement, the company's shares initially fell before advancing in trade to hit a fresh all-time high. (Click here to get the latest quotes for Pepsi.)
The maker of Pepsi sodas, Tropicana juices, Frito-Lay snacks and Quaker oatmeal said net income was $1.08 billion, or 69 cents per share in the first quarter, down from $1.13 billion, or 71 cents per share, a year earlier.
Excluding a hit from the Venezuelan currency devaluation, restructuring charges and other items, earnings rose to 77 cents per share, up from 69 cents a share in the year-earlier period.
Revenue rose about 1 percent to $12.58 billion from $12.43 billion a year ago.
Analysts had expected the company to report earnings excluding items of 71 cents per share on $12.53 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company stood by its full-year outlook, which calls for earnings to grow 7 percent from the $4.10 per share it earned in 2012. Last year was a "transition year" for PepsiCo, in which profit fell amid an increase in marketing and advertising spending.
The food and beverage giant saw strong performances in both emerging and developed markets, with its Americas revenue growing by 6 percent during the quarter. Those gains were propelled by Frito-Lay North America, Quaker Foods and Latin America foods, the company said.
Americas foods revenue rose 5.3 percent in the quarter and Americas beverages revenue slid 0.6 percent. Volume growth for snacks rose by four percent, and beverages by three percent.
"We really do feel good about our performance in the first quarter and it's a solid start to the year," said Hugh Johnston, Pepsico's CFO, in an interview with CNBC. "The company is really acutely focused on productivity as a means of both delivering margin improvement as well as investing back in the business for growth."