Pepsi beats 3Q estimates
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October 6, 1999: 10:32 a.m. ET
Cites performance of Tropicana, Frito-Lay snack food divisions
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NEW YORK (CNNfn) - PepsiCo Inc., bolstered by growth in its Frito-Lay snack food and Tropicana juice divisions, posted third-quarter profits Wednesday that beat Wall Street expectations by a penny per share.
The beverage and snacks company earned $507 million, or 34 cents per diluted share on a pro forma basis, for the quarter ended Sept. 4, up from $475 million, or 32 cents a share, a year earlier.
Analysts polled by First Call forecast profits of 33 cents per share for the latest period.
Pro forma results, which are adjusted to make year-to-year reports comparable, assume that deals including the company's August 1998 purchase of Tropicana and the spin-off of the Pepsi Bottling Group in March had occurred at the beginning of fiscal 1998.
Third-quarter revenues rose 6 percent to $4.6 billion, with Tropicana revenues jumping 12 percent to $517 million. The international unit of Frito-Lay, maker of Fritos, Cheetos and Doritos, posted an 11 percent increase in revenues to $869 million, compared with a 5 percent increase at the domestic division.
However, higher prices cut demand for soft drinks in the U.S. and Canada. As a result, the company said, it is taking a "conservative stance" on volume estimates for the rest of the year.
PepsiCo (PEP) stock gained 1 to 32-7/16 early Wednesday.
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PepsiCo
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