(Reuters) – PepsiCo Inc (PEP.N) posted a slightly better-than-expected quarterly profit and affirmed its full-year goal despite a smaller boost from foreign exchange.
The maker of Pepsi-Cola, Lays potato chips and Quaker oatmeal cited cost-savings from last year’s acquisition of its North American bottlers and the purchase of a Russian beverage company, which will help it endure higher commodity costs and weak consumer spending.
PepsiCo’s shares rose 0.8 percent, or 50 cents, in premarket trading on Wednesday.
Net income was $2.0 billion, or $1.25 per share in PepsiCo’s third quarter, up from $1.92 billion, or $1.19 per share, a year earlier.
Excluding items, earnings were $1.31 per share, topping analysts’ average estimate by a penny, according to Thomson Reuters I/B/E/S.
Revenue climbed to $17.58 billion from $15.51 billion a year ago. Analysts on average were expecting $17.18 billion.
The company stood by its full-year outlook, which calls for 2011 earnings to grow at a high single-digit rate. But that forecast now only includes a 1 percentage-point boost from foreign exchange rates, whereas PepsiCo earlier expected a 2- point boost.
The outlook “reflects uncertainty regarding macroeconomic and consumer trends for 2011 and anticipates high global commodity cost inflation and ongoing support of strategic initiatives in emerging markets and brand building activities,” the company said.
Still, PepsiCo said it expects earnings to benefit from cost-savings related to last year’s acquisition of its North American bottlers and the purchase of a Russian drink company.
PepsiCo also said it expects about $2.5 billion in share buybacks this year.
The company’s shares rose 50 cents to $61.45 in premarket trading from Tuesday’s close of $60.95 on the New York Stock Exchange.
(Reporting by Martinne Geller in New York; Editing by Lisa Von Ahn and Maureen Bavdek)
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