PepsiCo 4Q results top Wall Street's expectations

New York, Feb 14 (AP) PepsiCo's net income rose 17 per cent in the fourth quarter on higher prices and strength in Latin America. The US-based drink and snack maker's earnings and revenue beat analysts' estimates. It also provided a 2013 adjusted earnings forecast in line with Wall Street expectations and raised its quarterly dividend by 5.6 per cent. The stock climbed in premarket trading today. The results mark the end of what CEO Indra Nooyi said would be a "transitional year," with the company embarking on a cost-cutting program and stepping up investment in its flagship brands. PepsiCo's brands include Frito-Lay, Gatorade and Quaker. For the period that ended Dec. 29, PepsiCo Inc. Earned USD 1.66 billion, or USD 1.06 per share. That's compared with USD 1.42 billion, or 89 cents per share, a year ago. Excluding a pension charge and other items, earnings were USD 1.09 per share. Analysts surveyed by FactSet expected USD 1.05 per share. Revenue dipped 1 per cent to USD 20 billion from USD 20.2 billion, hurt in part by the stronger dollar and an extra week in last year's quarter. Still, the performance topped Wall Street's estimate of USD 19.8 billion. Shares of PepsiCo added 87 cents to USD 72.37 before the market opened. For the full year, PepsiCo earned USD 6.18 billion, or USD 3.92 per share. In the previous year the company earned USD 6.44 billion, or USD 4.03 per share. Adjusted earnings were USD 4.10 per share. Annual revenue fell 2 percent to USD 65.49 billion from USD 66.5 billion. Looking ahead, the company said it foresees 2013 earnings rising 7 per cent from 2012's adjusted earnings of USD 4.10 per share. This implies USD 4.39 per share, which is what analysts had predicted for the year. PepsiCo said that the quarterly dividend increase will begin in June.(AP) KAS 02141957 NNNN