PepsiCo backs FY18 core EPS view of $5.70, consensus $5.66
Consistent with its previous guidance for 2018, PepsiCo expects: Full-year organic revenue growth to be at least in line with the 2017 growth rate of 2.3 percent. Based on current market consensus rates, foreign exchange translation to have a neutral impact on revenue and earnings per share. A core effective tax rate in the "low 20s," reflecting benefits of the TCJ Act. The benefit of the TCJ Act to be substantially reinvested in initiatives to benefit the company's U.S.-based front line workforce and to otherwise increase the company's capabilities. Core EPS of $5.70, a 9 percent increase compared to 2017 core earnings per share of $5.23. Approximately $9 billion in cash from operating activities and free cash flow of approximately $6 billion, which assumes net capital spending of approximately $3.6 billion and a discretionary pension contribution of $1.4 billion. Total cash returns to shareholders of approximately $7 billion. Total dividends to shareholders are expected to be approximately $5 billion and share repurchases are expected to be approximately $2 billion.