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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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