Bloomberg / BusinessWeek
PepsiCo Inc. lowered the top end of its guidance on Thursday because of investments to expand its presence overseas.
The company reported results for its third-quarter but investors focused on its guidance.
The company, based in Purchase, N.Y., has expected earnings per share to rise between 11 percent and 13 percent for the full year, but cut the top end for a new range of 11 to 12 percent. Pepsi also expects the drag of foreign currency to hurt earnings by 1 percentage point, so it expects core earnings per share to range from 10 to 11 percent growth. Revenue from foreign countries can be affected by fluctuations in exchange rates when they are converted back into U.S. dollars.
CFO Hugh Johnston talked about the guidance on a conference call with investors Thursday.
QUESTION: What is the bottom line with changes to your guidance?
RESPONSE: From our standpoint, we gave a range of 11 to 13 (percent). We've consistently said 11 to 13 and we're now staying within that range of 11 to 13. What we really talked about here is much more geared towards making investments in good opportunities in the marketplace, some of which are nearer in nature, some of which are a little bit further out in nature but all of which are geared toward building the business and all of which have good returns on them.
So in terms of any expectation that we had, frankly it's exactly in line with what we had been communicating.
So no big change from our standpoint. ... In terms of where we expect revenue to go, obviously we saw good solid performance in the third quarter and we're expecting to continue to see good solid revenue performance.
So we feel good about the operating performance of the business right now.
The company reported results for its third-quarter but investors focused on its guidance.
The company, based in Purchase, N.Y., has expected earnings per share to rise between 11 percent and 13 percent for the full year, but cut the top end for a new range of 11 to 12 percent. Pepsi also expects the drag of foreign currency to hurt earnings by 1 percentage point, so it expects core earnings per share to range from 10 to 11 percent growth. Revenue from foreign countries can be affected by fluctuations in exchange rates when they are converted back into U.S. dollars.
CFO Hugh Johnston talked about the guidance on a conference call with investors Thursday.
QUESTION: What is the bottom line with changes to your guidance?
RESPONSE: From our standpoint, we gave a range of 11 to 13 (percent). We've consistently said 11 to 13 and we're now staying within that range of 11 to 13. What we really talked about here is much more geared towards making investments in good opportunities in the marketplace, some of which are nearer in nature, some of which are a little bit further out in nature but all of which are geared toward building the business and all of which have good returns on them.
So in terms of any expectation that we had, frankly it's exactly in line with what we had been communicating.
So no big change from our standpoint. ... In terms of where we expect revenue to go, obviously we saw good solid performance in the third quarter and we're expecting to continue to see good solid revenue performance.
So we feel good about the operating performance of the business right now.
