US: PepsiCo revenue beats estimates as sales rise in North America | Progresiv
PepsiCo reported better-than-expected quarterly net revenue as higher sales of snacks and non-fizzy beverages such as Gatorade in North America helped reduce the impact of a strong dollar. However, the company forecast 2016 adjusted earnings below many analyst estimates, citing a strong dollar and the exclusion of its Venezuelan business from its financial statements. 
Revenue from PepsiCo's North American beverages business rose 2 percent in the fourth quarter ended Dec. 26, accounting for 31.5 percent of total revenue.
Wells Fargo Securities said in a pre-earnings note that its research showed that PepsiCo's beverage sales in U.S. convenience stores rose 3.2 percent in the quarter, helped by aggressive pricing and "solid" sales of Gatorade and Starbucks ready-to-drink coffee, which Pepsi distributes.
PepsiCo Chief Executive Indra Nooyi said warmer-than-usual weather also helped the company's drinks business.
Frito-Lay North America and the North America beverage business were the only two PepsiCo units to report higher revenue in the quarter.
Net income attributable to PepsiCo rose 31 percent to 1.72 billion dollars in the period. Excluding items, the company earned 1.06 dollars per share, in line with analysts estimates, according to Thomson Reuters I/B/E/S. Net revenue fell 7 percent to 18.59 billion dollars, but beat analysts average estimate of 18.51 billion dollars.
PepsiCo said it expected organic revenue growth of about 4 percent in 2016. (www.reuters.com)
