PepsiCo earnings top Wall Street view

On the back of price increases, and stood by its full-year outlook

PepsiCo Inc reported a higher-than-expected quarterly profit on Wednesday, helped by price increases, and stood by its full-year outlook.

The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice said second-quarter net income had fallen to $1.49 billion, or 94 cents per share, from $1.89 billion, or $1.17 per share, a year earlier.

Excluding items, earnings were $1.12 per share, topping the analysts' average estimate of $1.09, according to Thomson Reuters

Revenue fell 2 percent to $16.5 billion, in line with Wall Street estimates.

The company affirmed its 2012 outlook, which calls for earnings per share to fall 5 percent from the $4.40 it earned in 2011. It expects revenue to grow by a mid-single-digit percentage rate, excluding the reduction from refranchising its businesses in China and Mexico.

 

PepsiCo said it still expected foreign exchange rates to hurt earnings-per-share growth by 3 percentage points as a stronger U.S. dollar reduces the value of overseas sales.