Pepsico Tops Estimates by a Penny as Profits Rise 10%

Stronger sales in its snacks and juice divisions bolstered the results.
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Food and beverage giant

Pepsico

(PEP) - Get Report

said Wednesday that profits rose by 10% amid stronger sales in its snacks and juice divisions, helping the company top consensus estimates by a penny.

The Purchase, N.Y-based company, which produces everything from corn chips to soft drinks, said its North American unit saw lower volume and its operating income fall 8% to $158 million. Pepsico blamed the lower numbers in North America on higher prices in retail outlets.

Overall, Pepsi posted first-quarter earnings per share of 29 cents, or $422 million, vs. 25 cents, or $382 million, in the year-ago quarter. Analysts surveyed by

First Call/Thompson Financial

projected earnings of 28 cents per share.

Pepsi shares declined in early trading, falling 1/2, or 1%, to 35 7/16.

Boosted by sales gains at Frito-Lay Worldwide, Tropicana and Pepsi-Cola International, first-quarter revenue rose 8% to $4.2 billion from $3.9 billion in the year-earlier quarter.

Earlier this month, Pepsico said it expected to meet consensus expectations, and warned that higher prices would hurt results in its North American beverage unit.

Pepsico's earnings come a day after rival

Coca-Cola

(KO) - Get Report

said it

beat analysts' estimates by 11 cents, excluding one-time charges.