PURCHASE, N.Y. ( TheStreet) -- PepsiCo ( PEP) matched profit expectations for the second quarter as net income and revenue grew by double-digits thanks to strength in its snacks division and in emerging markets. But the company will raise prices again as costs and weaker consumer spending pressure results.
Pepsi booked a second-quarter net profit of $1.89 billion, or $1.17 a share. On an adjusted basis, earnings came in at $1.21 a share, matching Wall Street's expectations. In the year-earlier period, Pepsi earned $1.6 billion, or $1.09 a share on an adjusted basis. Net revenue increased 13.7% to $16.83 billion, topping expectations for a top line of $16.41 billion. Revenue a year ago was $14.8 billion.
Pepsi shares were 1.5% lower in premarket trading Thursday after closing 0.1% lower at $68.49 on Wednesday. Pepsi said results were driven by revenue gains across its portfolio of global snacks and beverages businesses, and from the acquisition of Russian dairy and juice company Wimm-Bill-Dann.
Pepsi also updated its full-year 2011 guidance, and now expects high-single-digit EPS growth on a core, 52-week basis, compared with a fiscal 2010 profit of $4.13 a share. Analysts expect Pepsi to earn $4.50 a share for the year. Pepsi said worldwide snacks volume grew 10%, while worldwide beverage volume grew 5%.