CORRECTED – UPDATE 2-PepsiCo revenue misses Street view

(Corrects last paragraph to show volume increase is in food
business, not overall company)

* Q1 EPS 89 cts, up from 72 cts a year earlier

* Revenue up 13 pct to $9.37 bln vs estimate of $9.57 bln

* Sees FY10 EPS up 11-13 pct

NEW YORK, April 22 (BestGrowthStock) – PepsiCo Inc (PEP.N: ) posted a
better-than-expected quarterly profit, but its revenue fell
short of Wall Street expectations, hurt by ongoing weakness in
its Americas beverage business.

PepsiCo, which just bought its North American bottlers,
said it was boosting investment in innovation, research and
development and infrastructure in the current quarter — moves
it said should help accelerate growth in the second half of the
year.

Still, the maker of Pepsi-Cola and Frito-Lay snacks
affirmed its profit target, which calls for earnings per share
to grow 11 percent to 13 percent in 2010, excluding currency
fluctuations.

In the first quarter that ended on March 20, net income was
$1.43 billion, or 89 cents per share, up from $1.14 billion, or
72 cents per share, a year earlier.

Excluding items such as a one-time gain on previously held
equity interests, merger charges and the impact of Venezuela’s
currency devaluation, earnings were 76 cents per share.

Analysts on average were expecting earnings of 75 cents per
share, according to Thomson Reuters I/B/E/S.

Revenue rose 13 percent to $9.37 billion, but fell short of
analysts’ estimates, which called for $9.57 billion.

Archrival Coca-Cola Co (KO.N: ) also reported disappointing
quarterly revenue earlier this week. [ID:nN20206172]

PepsiCo just acquired its largest bottlers for $7.8 billion
in a bid for more control over the distribution of its drinks
in North America. Aside from giving it more flexibility and
speed in developing new products, Pepsi sees the deal resulting
in $400 million of cost savings.

Coke is doing a similar deal, but it is not expected to
close until the fourth quarter, giving Pepsi a head start of
six months or more.

PepsiCo said sales by volume rose 1 percent in its food
business, as strong snack sales in markets such as India and
China offset a decline in Europe.

Stock Market Analysis

(Reporting by Martinne Geller; Editing by Lisa Von Ahn,
Maureen Bavdek, Dave Zimmerman)

CORRECTED – UPDATE 2-PepsiCo revenue misses Street view