PepsiCo Inc. reported a higher-than-expected quarterly profit on Wednesday, helped by price increases, and stood by its full-year outlook.
The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice said second-quarter net income had fallen to $1.49-billion, or 94 cents per share, from $1.89-billion, or $1.17 per share, a year earlier.
Excluding items, earnings were $1.12 per share, topping the analysts’ average estimate of $1.09, according to Thomson Reuters I/B/E/S.
Revenue fell 2 per cent to $16.5-billion, in line with Wall Street estimates.
The company affirmed its 2012 outlook, which calls for earnings per share to fall 5 per cent from the $4.40 it earned in 2011. It expects revenue to grow by a mid-single-digit percentage rate, excluding the reduction from refranchising its businesses in China and Mexico.
PepsiCo said it still expected foreign exchange rates to hurt earnings-per-share growth by 3 percentage points as a stronger U.S. dollar reduces the value of overseas sales.