NASDAQ$PEP

PepsiCo · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

PepsiCo's Q3 2023 performance showcased agility and resilience amidst a dynamic environment, leading to revised full-year EPS guidance.

PepsiCo reported a 6.7% increase in net revenue and a 15% increase in EPS for the third quarter of 2023. The company is raising its full-year core constant currency EPS growth expectation to 13% and continues to expect 10% organic revenue growth.

  • PepsiCo's businesses demonstrated agility and resilience across various regions and categories.
  • Full-year 2023 core constant currency EPS is now expected to increase by 13% (previously 12%).
  • Full-year 2023 organic revenue is still expected to increase by 10%.
  • Full-year 2024 organic revenue and core constant currency EPS growth are expected to be towards the upper end of long-term targets.

Headline financials

Total Revenue

$23.5B

Previous: $22B+6.7%
EPS (adj)

$2.25

Previous: $1.97+14.2%
Organic revenue growth

8.8%

Previous: 16.0%-45.0%
Capital Expenditures

-$1.02B

No prior period
Free Cash Flow

$3.09B

Previous: $2.7B+14.4%
Net Income

$3.09B

Previous: $2.7B+14.4%
Operating Income

$4.02B

Previous: $3.35B+19.7%
Gross Profit

$12.8B

Previous: $11.7B+9.6%
Cash & Equivalents

$10B

Previous: $6.42B+56.1%
Total Assets

$100B

Previous: $94.5B+5.8%
Stock-Based Comp

$88M

Previous: $77M+14.3%

Revenue & EPS history

PepsiCo · Revenue · Quarterly

$23.5B

Q3 2023+6.7%vs Q3 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

PepsiCo · $24.2B total across 6 segments · Q2 2026

  • PepsiCo Beverages North America
    $7.24B
  • PepsiCo Foods North America
    $6.37B
  • Europe, Middle East and Africa
    $4.98B
  • Latin America Foods
    $2.94B
  • International Beverages Franchise
    $1.52B
  • Asia Pacific Foods
    $1.12B

Forward guidance

For fiscal year 2023, the Company now expects to deliver 13 percent core constant currency EPS growth (previously 12 percent). Consistent with its previous guidance for 2023, the Company continues to expect 10 percent organic revenue growth.

Tailwinds

  • Deliver 13 percent core constant currency EPS growth
  • Expect 10 percent organic revenue growth
  • A core annual effective tax rate of 20 percent
  • Total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.7 billion and share repurchases of $1.0 billion.
  • 2023 core EPS of $7.54, an 11 percent increase compared to 2022 core EPS of $6.79.

Headwinds

  • An approximate 2-percentage-point foreign exchange translation headwind to impact reported net revenue and core EPS growth based on current market consensus rates.
  • We are unable to reconcile our full year projected 2023 organic revenue growth, full year projected 2024 organic revenue growth or our long-term organic revenue growth target to our full year projected 2023 reported net revenue growth, full year projected 2024 reported net revenue growth and long-term reported net revenue growth because we are unable to predict the 2023, 2024 and long-term impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates and because we are unable to predict the occurrence or impact of any acquisitions and divestitures.
  • We are also not able to reconcile our full year projected 2023 core effective tax rate to our full year projected 2023 reported effective tax rate, our full year projected 2023 core constant currency EPS growth to our full year projected 2023 reported EPS growth, our full year projected 2024 core constant currency EPS growth to our full year projected 2024 reported EPS growth or our long-term core constant currency EPS growth target to our long-term reported EPS growth because we are unable to predict the 2023, 2024 and long-term impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices.
  • Therefore, we are unable to provide a reconciliation of these measures.
  • Statements in this communication that are “forward-looking statements,” including our 2023 and 2024 guidance and outlook and long-term financial performance targets are based on currently available information, operating plans and projections about future events and trends.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.7%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+0.6%

Avg return

30 days after

64%

46 / 72 earnings

Positive

+7.4%

Q3 2022

Best reaction

-4.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%+0.8%-4.2%
Q4 2025+4.9%+9.9%+3.5%
Q3 2025+4.0%+9.1%+3.0%
Q2 2025+1.6%-1.6%+3.8%
Q1 2025-4.9%-5.6%-9.1%
Q4 2024-4.5%-3.8%+2.9%
Q3 2024+3.2%+4.5%-1.9%
Q2 2024+1.7%+0.7%+5.4%
Q1 2024+0.5%-0.5%+1.6%
Q4 2023-1.9%-3.6%-6.2%
Q3 2023+0.8%-0.8%+3.0%
Q2 2023+2.8%+0.7%+0.5%
Q1 2023+1.6%+2.9%-0.9%
Q4 2022+2.9%+2.7%+0.5%
Q3 2022+7.4%+6.2%+9.5%
Q2 2022-0.2%+0.4%+2.7%
Q1 2022+0.6%-1.2%-2.1%
Q4 2021-2.0%-3.5%-10.6%
Q3 2021+3.2%+3.9%+9.4%
Q2 2021+3.4%+4.2%+3.7%
Q1 2021+1.4%+2.5%+3.2%
Q4 2020-2.8%-2.4%-3.4%
Q3 2020-0.4%-2.1%-3.8%
Q2 2020+0.8%+0.1%+2.5%
Q1 2020-0.8%-3.2%-1.6%
Q4 2019+0.6%-0.3%-12.8%
Q3 2019+4.7%+2.5%+2.2%
Q2 2019+1.4%+0.5%-2.3%
Q1 2019+3.8%+3.3%+6.6%
Q4 2018+3.0%+2.9%+2.7%
Q3 2018-2.9%-3.8%+0.7%
Q2 2018+4.4%+4.6%+5.5%
Q1 2018+0.6%-2.0%-0.8%
Q4 2017-2.5%-0.8%+0.1%
Q3 2017+1.2%+0.8%+1.0%
Q2 2017+0.4%+0.6%+1.8%
Q1 2017-1.3%-1.6%+3.3%
Q4 2016+1.1%+1.2%+4.2%
Q3 2016+1.3%-0.3%-0.3%
Q2 2016+2.2%+2.7%+2.6%
Q1 2016+0.5%
Q4 2015+0.9%
Q3 2015+2.8%
Q2 2015-0.1%
Q1 2015-2.2%
Q4 2014+2.3%
Q3 2014+0.8%
Q2 2014+3.1%
Q1 2014+1.3%
Q4 2013-4.2%
Q3 2013+2.5%
Q2 2013-0.8%
Q1 2013+5.0%
Q4 2012+3.0%
Q3 2012+0.7%
Q2 2012+3.5%
Q1 2012-0.9%
Q4 2011+0.0%
Q3 2011+2.3%
Q2 2011-4.0%
Q1 2011+1.4%
Q4 2010-2.4%
Q3 2010-3.5%
Q2 2010+3.1%
Q1 2009+0.4%
Q1 2010-0.4%
Q4 2007-1.4%
Q2 2009-1.4%
Q4 2009-1.4%
Q4 2008-0.9%
Q3 2008-0.9%
Q3 2009-0.9%

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