PepsiCo Inc reported higher-than-expected quarterly earnings on Wednesday, despite weaker revenue caused by the stronger U.S. dollar and the exit of certain businesses.
The maker of Diet Pepsi, Frito-Lay snacks and Tropicana orange juice said third-quarter net income was $1.90 billion, or $1.21 per share, down from $2.00 billion, or $1.25 per share, a year earlier.
Excluding restructuring and other charges and a gain on commodity hedges, earnings were $1.20 per share. On that basis, analysts on average were expecting $1.16 per share, according to Thomson Reuters I/B/E/S.
Revenue fell 5 percent to $16.65 billion, hurt by foreign exchange rates and the refranchising of its bottling businesses in China and Mexico.
The company also affirmed its full-year outlook, which calls for earnings per share to fall 5 percent from the $4.40 it earned in 2011 and revenue to increase by a low single-digit rate reflecting the changes in China and Mexico.
(Reporting By Martinne Geller in New York; Editing by Maureen Bavdek)