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Pepsi Bubbles Past Estimates

Results are helped by strength at Frito-Lay.
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(PEP) - Get PepsiCo, Inc. Report

reported a 16% rise in first-quarter earnings, topping Wall Street's target, as results were boosted by strength at its Frito-Lay snacks division.

The Purchase, N.Y., food and beverage giant posted earnings of $1.1 billion, or 65 cents a share, up from $947 million, or 56 cents a share, a year earlier. Analysts polled by Thomson Financial projected earnings of 61 cents a share.

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Revenue rose to $7.35 billion from $6.72 billion, exceeding Wall Street's estimate of $7.18 billion.

The company's Frito-Lay division recorded 7% revenue growth, which the company said was led by strength in the Doritos and SunChips brands. Pepsi's beverage division generated 5% revenue growth and a 1% increase in volume, helped by non-carbonated beverages like Gatorade, Aquafina and SoBe.

Pepsi backed its full-year forecast for earnings of at least $3.30 a share. Analysts, on average, expect 2007 earnings per share of $3.32.

"Our business momentum is strong coming out of the first quarter, which increases our confidence in the full-year outlook," said CEO Indra Nooyi.

Shares of Pepsi were adding 29 cents, or 0.4%, to $66.70 in premarket trading.