PepsiCo, Inc. (PEP) announced, for fiscal 2020, the company continues to expect: a core effective tax rate of approximately 21 percent; and total cash returns to shareholders of approximately $7.5 billion, comprised of dividends of $5.5 billion and share repurchases of $2 billion. The company now expects a 3 percentage-point foreign exchange translation headwind to negatively impact reported net revenue and core earnings per share performance based on current market consensus rates.
For the second quarter 2020, core earnings per share was $1.32 compared to $1.54, a year ago. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $1.25 for the quarter. Analysts' estimates typically exclude special items.
Second quarter net revenue was $15.95 billion compared to $16.45 billion, previous year. Core organic revenue declined 0.3%. Analysts expected revenue of $15.38 billion, for the quarter.
PepsiCo CEO, Ramon Laguarta, said: "Despite being faced with significant challenges and complexities as a result of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business."
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