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Sep 05, 2020
PepsiCo Q3 2020 Earnings Report
PepsiCo's Q3 2020 performance showcased portfolio diversification, team resilience, and commitment to customers, delivering strong results for shareholders.
Key Takeaways
PepsiCo reported a revenue increase of 5.3 percent and an EPS increase of 10 percent. Organic revenue grew by 4.2 percent, and core constant currency EPS increased by 9 percent, driven by global snacks and food business strength and beverage business improvement. The company updates its full-year 2020 guidance, expecting approximately 4 percent organic revenue growth and approximately $5.50 in core EPS.
Reported revenue increased 5.3 percent.
Reported earnings per share increased 10 percent.
Organic revenue increased 4.2 percent.
Core constant currency earnings per share increased 9 percent.
Forward Guidance
PepsiCo expects approximately 4 percent organic revenue growth and approximately $5.50 in core earnings per share for the full year.
Positive Outlook
- Full-year organic revenue growth to be approximately 4 percent.
- Full-year core earnings per share of $5.50 compared to 2019 core earnings per share of $5.53.
- Approximately $10 billion in cash from operating activities
- Free cash flow of approximately $6 billion, which assumes net capital spending of approximately $4 billion.
- Total cash returns to shareholders of approximately $7.5 billion, comprised of dividends of approximately $5.5 billion and share repurchases of approximately $2 billion.
Challenges Ahead
- Foreign exchange translation headwinds to negatively impact net revenue and core earnings per share performance by (2) percentage points
- Impact of the spread of COVID-19
- Changes in laws related to the use or disposal of plastics or other packaging of PepsiCo’s products
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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