PepsiCo's (PEP - Get Report) second-quarter earnings rose a better-than-expected 14% from last year, as the company continued to get a strong and balanced performance from its line of drinks and snacks.
Pepsi earned $1.36 billion, or 80 cents a share, in the quarter, compared with $1.19 billion, or 70 cents a share, last year. Analysts had been forecasting earnings of 77 cents a share in the latest quarter, according to Thomson First Call. Sales rose 12% to $8.6 billion in the quarter, about $120 million ahead of estimates.
For all of 2006, Pepsi expects to earn at least $2.95 a share, compared with the Thomson First Call consensus estimate of $2.96 a share.
"Our international business had another outstanding quarter, with double-digit revenue and operating profit growth," Pepsi said. "And in North America, our balanced product portfolio has been a key to our results. Our beverage growth in North America was driven by our leading portfolio of noncarbonated beverages, and our snacks business had solid growth in both core salty snacks and in other macro snacks."In premarket trading Thursday, PepsiCo rose 84 cents, or 1.4%, to $61.94.