PepsiCo sees FY19 core EPS $5.50, consensus $5.51
Consistent with its previous guidance for 2019, the company continues to expect: Full-year organic revenue growth to be 4%. A core effective tax rate of approximately 21%. A decline in core constant currency EPS of approximately 1%, which incorporates lapping a number of 2018 strategic asset-sale and refranchising gains, the expected increased core effective tax rate, and expected 2019 incremental investments to strengthen the business. Approximately $9B in cash from operating activities and free cash flow of approximately $5B, which assumes net capital spending of approximately $4.5B. Total cash returns to shareholders of approximately $8B, comprised of dividends of approximately $5B and share repurchases of approximately $3B. Applying current market consensus rates implies a 2-percentage-point foreign exchange translation headwind to both reported net revenue and EPS performance. This assumption and the guidance above implies 2019 core earnings per share of $5.50, a 3% decrease compared to 2018 core earnings per share of $5.66.