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PepsiCo Beats Estimates

It reaffirms estimates too.
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PepsiCo (PEP) - Get Report beat third-quarter earnings estimates and reaffirmed full-year guidance.

The Purchase, N.Y., company made $1.74 billion, or $1.06 a share, for the quarter ended Sept. 8, up from the year-ago $1.49 billion, or 89 cents a share. Revenue rose to $10.17 billion from $9.13 billion a year earlier.

Excluding certain items, earnings were 99 cents a share in the latest quarter, 3 cents ahead of the Thomson Financial analyst mean estimate.

"Our third-quarter performance was very strong, with double-digit revenue and operating profit growth," said CEO Indra Nooyi. "All of the company's operating divisions successfully navigated through an environment of higher input costs in order to deliver balanced top- and bottom-line performance.

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"In PepsiCo International, broad-based volume gains in snacks and beverages coupled with foreign currency tail winds resulted in continued double-digit revenue and operating profit growth. Favorable foreign currency upsides allowed us to reinvest in several international markets in the quarter. In North America, our profit growth accelerated to 7%. Frito-Lay's strong performance continued, and 7% profit growth in our domestic beverage business marked another quarter of sequential improvement.

The company guided to core earnings for the year of $3.35 a share, in line with the $3.37-a-share Wall Street target.

Shares rose $2.88 to $76.48.