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PepsiCo reported a 16% increase in Q1 net income to $1.1 billion, or $0.65/share, beating the Street by four cents. Revenue grew 9.4% to $7.35b, also coming in higher than analysts' estimates of $7.18b (Thomson) to $7.25b (Bloomberg). Pepsi reaffirmed full-year EPS guidance of $3.30, which is short of analysts' expectations of $3.32 (Thomson) - $3.33 (Bloomberg). Pepsico-PEP-chart-04-24-07 Total sales volumes rose 7% at its snacks division and 3.5% for beverages. Snacks sales volume at PepsiCo Int'l was the fastest growing division, +13% (led regionally by Asia Pacific, +19%), while beverage sales volumes in N. America rose only 1%. PepsiCo's CEO said she anticipates spending around $500m annually on acquisitions. MarketWatch reports Pepsi's ongoing share repurchase program reduced Q1 weighted average shares outstanding by 1.3%. Shares of Pepsi lost 0.27% to $66.41 during normal trading yesterday and are currently trading near an all-time high: $66.96 intra-day yesterday and closing at $66.65 last Friday.

Sources: Press release, Bloomberg, MarketWatch
Commentary: Coke, Pepsi Losing Market ShareSuper Fizzy Soda StocksPepsiCo Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: PepsiCo Inc. (PEP). Competitors: The Coca-Cola Company (KO), Cadbury Schweppes (CSG), Kraft Foods (KFT). ETFs: Consumer Staples Select Sect. SPDR (XLP), Vanguard Consumer Staples (VDC)

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Source: Pepsi's Net Up 16%, Beats Street; Guidance Reaffirmed, but Short of Estimates