5 Essential Themes in PepsiCo's Upcoming Earnings

Through the first nine months of this year, PepsiCo Inc. (NYSE: PEP) stock has turned in a credible performance, generating a total return of nearly 10%, which is just a few percentage points shy of the S&P 500 Total Return Index's performance of roughly 14% year to date. Perhaps PepsiCo can gain some ground on the index when it releases third-quarter 2017 earnings next week on Wednesday, Oct. 4. Below, let's sift through five key themes which will potentially catalyze PepsiCo when it files its report before the markets open.

Like many of its peers, PepsiCo provides guidance for organic revenue rather than reported revenue. Organic revenue adjusts reported revenue for currency effects, acquisitions, dispositions, and other one-time items to provide an apples-to-apples view of top-line growth. Management has targeted organic revenue growth of 3% this year. In the first and second quarters of 2017, the company posted organic revenue growth of 2.1% and 3%, respectively.

On the earnings front, PepsiCo expects adjusted, or "core" earnings per share of $5.13 for the full year. Core earnings are simply reported earnings adjusted for commodity market-price changes, and restructuring and impairment charges. PepsiCo has earned $2.44 in core EPS between the first two quarters of the year. And as a point of comparison for the upcoming quarterly report, the company booked $1.40 in core EPS in the third quarter of 2016.

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Source: Fool.com