Stronger sales for PepsiCo in 1Q, profits jump

(AP Photo/Paul Sakuma)

PURCHASE, N.Y. (AP) — Higher prices and stronger drink sales pushed PepsiCo beyond most expectations that Wall Street had about its first quarter.
For the period ended March 25, PepsiCo Inc. earned $1.32 billion, or 91 cents per share. A year earlier the food and beverage company earned $931 million, or 64 cents per share.
Removing restructuring charges and one-time costs, earnings were 94 cents per share. That’s better than the 91 cents per share that analysts surveyed by Zacks Investment Research expected.
Revenue increased to $12.05 billion from $11.86 billion. Analysts predicted $11.97 billion in revenue, according to Zacks.
Sales for the North America Beverages segment and Frito-Lay North America both climbed 2 percent in the quarter.
PepsiCo, based in Purchase, New York, still foresees full-year earnings of $5.09 per share, just below analyst projections for $5.14.
Shares fell slightly before the opening bell Wednesdsay.
The news come as Coca-Cola is cutting its workforce, amid a sales slump. The beverage company plans to cut 12-hundred jobs.
Coke says overall sales are down 11-percent from a year ago, and profits are off 20-percent. The cuts are expected to start in the second half of the year.
The company says the cuts are part of a broader cost-cutting plan, in hopes of saving 800-million dollars.
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