Pepsico 4Q results beat Wall Street expectations on higher prices, Latin American strength | iNFOnews

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Pepsico 4Q results beat Wall Street expectations on higher prices, Latin American strength

FILE - In this Feb. 7, 2012 file photo, Diet Pepsi Wild Cherry cans are displayed at a store in Pittsburgh. PepsiCo reports its fourth quarter earnings, Thursday, Feb. 14. 2013. (AP Photo/Gene J. Puskar, File)
February 14, 2013 - 4:46 AM

NEW YORK, N.Y. - PepsiCo's net income rose 17 per cent in the fourth quarter on higher prices and strength in Latin America.

The drink and snack maker's earnings and revenue beat analysts' estimates. It also provided a 2013 adjusted earnings forecast in line with Wall Street expectations and raised its quarterly dividend by 5.6 per cent.

The stock climbed in premarket trading Thursday.

The results mark the end of what CEO Indra Nooyi said would be a "transitional year," with the company embarking on a cost-cutting program and stepping up investment in its flagship brands. PepsiCo's brands include Frito-Lay, Gatorade and Quaker.

For the period that ended Dec. 29, PepsiCo Inc. earned $1.66 billion, or $1.06 per share. That's compared with $1.42 billion, or 89 cents per share, a year ago.

Excluding a pension charge and other items, earnings were $1.09 per share. Analysts surveyed by FactSet expected $1.05 per share.

Revenue dipped 1 per cent to $20 billion from $20.2 billion, hurt in part by the stronger dollar and an extra week in last year's quarter. Still, the performance topped Wall Street's estimate of $19.8 billion.

Shares of PepsiCo, based in Purchase, N.Y., added 87 cents to $72.37 before the market opened.

For the full year, PepsiCo earned $6.18 billion, or $3.92 per share. In the previous year the company earned $6.44 billion, or $4.03 per share.

Adjusted earnings were $4.10 per share.

Annual revenue fell 2 per cent to $65.49 billion from $66.5 billion.

Looking ahead, the company said it foresees 2013 earnings rising 7 per cent from 2012's adjusted earnings of $4.10 per share. This implies $4.39 per share, which is what analysts had predicted for the year.

PepsiCo said that the quarterly dividend increase will begin in June.

News from © The Associated Press, 2013
The Associated Press

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