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(PEP) - Get PepsiCo, Inc. Report

said Monday it was revising upward its 2003 earnings and 2004 guidance because of a botched calculation involving its stock options expense.

Investors worried about the company's math acumen offered the shares down 16 cents, or 0.3%, to $50.05 on the Instinet premarket session.

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The soft-drink giant said fixing the mistake increased 2003 earnings by 4 cents a share to $2.05 a share; increased 2002 earnings by 2 cents a share to $1.68 a share; and resulted in 2004 per-share earnings guidance of $2.27 to $2.29. The old guidance, published Feb. 5, was for 2004 earnings of $2.24 to $2.28 a share.

Analysts were forecasting 2004 earnings of $2.27 a share, according to Thomson One Analytics.

PepsiCo said the higher guidance reflected both "a correction of the computational error and a re-estimation of costs, combined with the continued business momentum we are seeing."

The revision is a minor black eye for a company that declared with much fanfare in early December that it would

start expensing options on its income statement, as well as curb their use in executive compensation. "The company believes reflecting the expense under this method will provide investors the greatest level of financial statement comparability and transparency," PepsiCo said at the time.