PepsiCo Inc. (NYSE: PEP) reported its third-quarter financial results before the markets opened on Tuesday. The company had $1.35 in earnings per share (EPS) on $16.3 billion in revenue, compared to consensus estimates from Thomson Reuters of $1.26 in EPS on revenue of $16.15 billion. In the same period of the previous year, the company posted EPS of $1.36 and $17.22 billion in revenue.

Organic revenue grew 7.4% and reported net revenue declined 5%, due to foreign exchange translation, which had a 12-percentage-point unfavorable impact on reported net revenue.

What stands out in this quarter is that Pepsi’s Venezuela segment incurred a charge of $0.92 per share, which would drastically drop GAAP EPS.

The company noted that it will no longer include the results of its local Venezuelan subsidiaries and joint venture within its financial statements. In fact, the company will only include revenue relating to those operations to record cash received for those sales.

This change is due to the hyperinflation taking place in Venezuela from falling oil prices. As a result the country has been using capital controls that ultimately have hurt Pepsi.

Indra Nooyi, chairman and CEO of PepsiCo, commented on earnings:

Based on our year-to-date results and our outlook for the remainder of the year, we are increasing our full-year core constant currency EPS growth target to 9 percent.

In addition, despite our change in the accounting for our Venezuela operations and the related accounting charges, we remain dedicated to serving the Venezuelan marketplace with our leading food and beverage brands.

Our year-to-date mid-single-digit organic revenue growth and double-digit core constant currency EPS growth reflect our focus on managing those things that are in our control in a challenging environment, namely innovation, brand building, marketplace execution, and productivity. Productivity, in particular, continues to simultaneously fund investments in our business and contribute to margin enhancement, and we remain on track to deliver our five-year, $5 billion productivity savings target through 2019.

Shares of Pepsi closed Monday up 1.8%, at $95.81 in its 52-week trading range of $76.48 to $100.76. In early trading indications on Tuesday, shares were up 2.6% at $98.25. The stock has a consensus analyst price target of $104.33.

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