Soft drink and snack (and oatmeal) giant PepsiCo
Helping net income was a $28 million pre-tax gain on the sales of shares in Pepsi Bottling Group
To its merit, the company has experienced balanced earnings growth in virtually every division. For example, while Tropicana's chilled-juice volume declined by 2% in North America, double-digit growth in Gatorade, Aquafina, and Propel products contributed to overall volume increases of 4%. Also significant among operating trends was that the company reported strong international growth, as Russia, China, India, and other emerging markets bolstered snack-food sales -- a favorable and likely sustainable trend given continuing market integration and economic growth in those regions.
A quick look at adjusted numbers indicates stable growth in Pepsi's core business, though not quite the blockbuster that a quick glance at numbers would have you believe. As full-year prospects go, Pepsi has product innovations such as Pepsi Lime and Diet Pepsi Lime -- and a reformulated Pepsi One -- headed for store shelves. There will be the new Dole Lights line of 50% juice drinks. And there will be a full year's revenue from MovieNachos, a Frito-Lay-branded movie snack being sold at AMC Theatres
Analysts expect the company to earn $2.85 a share in 2006 -- a similar multiple to Coca-Cola