PepsiCo beats estimates

PepsiCo posted third-quarter profit that topped analysts’ estimates and boosted its forecast for the year.

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New York - PepsiCo posted third-quarter profit that topped analysts’ estimates and boosted its forecast for the year after raising prices on its drinks and snacks.

Earnings were $1.35 a share in the three months ended Sept. 5, the Purchase, New York-based company said in a statement on Tuesday. Analysts estimated $1.26, according to data compiled by Bloomberg.

CEO Indra Nooyi has been cutting costs and seeking new sources of growth from emerging markets. She also has boosted prices on the company’s products, with effective net pricing rising 2 percent in the Frito-Lay North America and North America Beverages divisions. While total sales fell 5.2 percent to $16.3 billion, that topped analysts’ $16.1 billion average projection.

PepsiCo also said core constant currency earnings per share will grow 9 percent this year. That’s up from a forecast of 8 percent in July.

Shares of the company rose 1.2 percent to $97 at 6:31 a.m. in early trading in New York. The stock was up 1.3 percent this year as of Monday.

BLOOMBERG