PepsiCo raises FY23 core EPS view to $7.27 from $7.20

For fiscal year 2023, the Company now expects to deliver 8 percent organic revenue growth (previously 6 percent), and 9 percent core constant currency EPS growth (previously 8 percent). Consistent with its previous guidance for 2023, the Company continues to expect: A core annual effective tax rate of 20 percent; and Total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.7 billion and share repurchases of $1.0 billion. In addition, the company continues to expect an approximate 2-percentage-point foreign exchange translation headwind to impact reported net revenue and core EPS growth based on current market consensus rates. This assumption and the guidance above imply 2023 core EPS of $7.27 (previously $7.20), a 7 percent increase (previously 6 percent) compared to 2022 core EPS of $6.79. EPS consensus for FY23 is $7.26 and revenue consensus is $89.9B.