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PepsiCo Q3 Profit Tops Estimates; Raises Guidance

pepsico 021517 05oct21 lt

PepsiCo, Inc. (PEP) reported core constant currency earnings per share growth of 5.5% for the third quarter 2021. Organic revenue growth was 9.0%. Looking forward, the company now projects full-year core constant currency earnings per share to increase at least 11 percent, and organic revenue to increase approximately 8 percent.

Third quarter core earnings per share was $1.79 compared to $1.66, a year ago. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.73, for the quarter. Analysts' estimates typically exclude special items. Core operating profit increased to $3.24 billion from $3.04 billion.

Net income to PepsiCo declined to $2.22 billion from $2.29 billion, last year. Earnings per share was $1.60 compared to $1.65.

Third quarter net revenue increased 11.6% to $20.19 billion from $18.09 billion, a year ago. Analysts expected revenue of $19.39 billion, for the quarter.

For fiscal year 2021, the company now expects to deliver approximately 8 percent organic revenue growth (versus previous guidance of 6 percent), at least 11 percent core constant currency earnings per share growth (versus previous guidance of 11 percent), and at least 12 percent core EPS growth (versus previous guidance of 12 percent).

The company continues to expect a 1-percentage-point foreign exchange translation tailwind to benefit reported net revenue and core EPS growth based on current market consensus rates. This assumption and the guidance imply 2021 core earnings per share of at least $6.20. Analysts polled by Thomson Reuters expect the company to report profit per share of $6.24.

Consistent with its previous guidance for 2021, the company continues to project:
total cash returns to shareholders of approximately $5.9 billion, comprised of dividends of approximately $5.8 billion and share repurchases of $106 million.

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