PURCHASE, N.Y. (AP) — PepsiCo moved to a profit in its fourth quarter, getting a boost from a large tax benefit as sales in its Frito-Lay unit North America strengthened. Shares rose 2.4 percent before the market opened on Friday.
The food and beverage company recorded a $5.3 billion tax benefit in the quarter, which included reorganizing its international operations. A year earlier it had a tax expense of $2.5 billion. PepsiCo Inc. earned $6.85 billion, or $4.83 per share, for the period ended December 29. The Purchase, New York-based company lost $710 million, or 50 cents per share, in the prior-year period.
Adjusted earnings were $1.49 per share, matching the expectations of analysts surveyed by Zacks Investment Research. Revenue was basically flat at $19.52 billion, edging out Wall Street's forecast of $19.51 billion. Frito-Lay North America posted a four percent revenue gain, while the North America beverages segment reported a two percent increase.
PepsiCo expects 2019 earnings to be $5.50 per share. Analysts polled by FactSet predict $5.85 per share.
