Pepsi Reaffirms 2010 Profit Outlook
(PepsiCo article updated with additional background information and PepsiCo stock price movements)
PURCHASE, N.Y. (
) --
PepsiCo
(PEP) - Get Report
reported fourth-quarter earnings in line with expectations and reaffirmed its profit outlook for the year.
PepsiCo says it's still targeting an 11% to 13% growth rate for its earnings per share in 2010.
The soft-drink company on Thursday reported fourth-quarter net income of $1.4 billion, or 90 cents a share, compared with $719 million, or 46 cents a share the previous year. Analysts surveyed by Thomson Reuters expected earnings of 91 cents a share.
PepsiCo reported revenue of $13.3 billion, up from last year's $12.7 billion.
PepsiCo attributed the top- and bottom-line increases to growth in emerging markets such as South America and cost cuts across its operations.
The soft-drink and snack maker expects to resume a share-repurchase program after it completes its deal to acquire
Pepsi Bottling Group
.
PepsiCo anticipates that in 2010 share repurchases and a voluntary $600 million pension-plan contribution would add up to about $5 billion in costs this year.
PepsiCo on Dec. 8 reached an agreement with
TheStreet Recommends
Dr Pepper Snapple
(DPS)
to manufacture and distribute certain Dr Pepper Snapple products after the completion of PepsiCo's acquisition of its two anchor bottlers.
Rival
Coca-Cola
(KO) - Get Report
has also reported in-line fourth quarter earnings.
Coca-Colahas a strong presence in the emerging markets, and watched its international unit case volumes soar during the period. In emerging markets China and India, Coca-Cola's unit case volume increased 29% and 20%, respectively.
PepsiCo stock settled up 1.3% at $61.20 Thursday, while Coca-Cola finished the session up 0.8% at $54.20. Dr Pepper Snapple ended the day higher as well, up 1.2% at $27.20.
-- Reported by Andrea Tse in New York
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