PepsiCo reported 4Q06 net earnings this morning and they were impressive, with growth of 61% versus the previous year period. By the numbers, Pepsi recorded a profit of $1.78 billion, good for EPS of $1.06, up from a profit $1.11 billion (EPS of $0.65) in the year-ago period. Excluding one-time benefits and charges, the company's EPS was $0.72 on revenue of $10.38 billion, up from $10.01 billion a year earlier. Both Thomson and Reuters consensus estimates were for EPS of $0.72. Pepsi earnings were especially powered by strong international growth withPepsiCo International reporting 9% growth in beverages and 7% growth in snacks by volume. Looking ahead, Pepsi expects mid-single-digit volume and revenue growth, leading to EPS of at least $3.30 per share, versus the Street's current expectation of $3.31. Shares are higher by $0.70, or 1.09%, to $65.20 in pre-market trading.
• Sources: Press Release, TheStreet.com, MarketWatch, Reuters
• Commentary: Super Fizzy Soda Stocks, Coke's New Drink & Pepsi's Updated Outlook, Cramer's Take on PEP
• Stocks and ETFs to watch: PepsiCo (PEP). Competitors: The Coca-Cola Company (KO), Cadbury Schweppes (CSG). ETFs: Consumer Staples Select Sect. SPDR (XLP), Vanguard Consumer Staples (VDC)
Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.