PepsiCo has revised its 2003 and 2002 financial results to correct the overstatement of stock option expense due to a computational error.

The revision increased the previously reported earnings per share for 2003 by $0.04 to $2.05, and for 2002 by $0.02 to $1.68, on a fully diluted basis. The stock option expense is a non-cash charge and the revision had no impact on the company's previously reported cash flow or division operating profit.

PepsiCo said it had adjusted its 2004 earnings per share guidance to a range of $2.27 to $2.29, 11-12% growth compared to 2003.

"A correction of the computational error and a re-estimation of costs, combined with the continued business momentum we are seeing, gives us confidence to take up the EPS range," said Steve Reinemund, Chairman and CEO.