PepsiCo quarterly results top Wall Street's expectations
PepsiCo's net income rose 17 percent 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 percent.
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 percent 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, New York, 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.