Pepsi First Quarter Beats Consensus

Pepsi is targeting 11% to 13% growth in earnings per share after reporting consensus-topping earnings for the first quarter.
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NEW YORK (TheStreet) -- PepsiCo (PEP) - Get Report is targeting 11% to 13% growth in per-share earnings after reporting consensus-topping earnings for the first quarter.

For fiscal 2010, the company is targeting the earnings growth off its fiscal 2009 earnings of $3.71 a share, with about 6% earnings-per-share growth in the first half of the year. This includes a charge of about $40 million related to the Patient Protection and Affordable Care Act.

For the first quarter, Pepsi reported net income of $1.43 billion, or 76 cents a share, on revenue of $9.37 billion, compared with $1.14 billion, or 71 cents a share, on revenue of $8.26 billion the previous year.

The company saw its macrosnacks business gain share in key markets and posted solid performance in beverages supported by the benefits of the acquisition of its two largest bottlers, growth in developing markets and improving top-line trends in North America.

Analysts surveyed by Thomson Reuters had forecast earnings of 75 cents a share on revenue of $9.57 billion.

In the first quarter, Pepsi repurchased $940 million in common stock. The company anticipates that share repurchases will total about $4.4 billion in 2010.

-- Reported by Andrea Tse in New York

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