PepsiCo (NASDAQ:PEP) announced strong Q1 results. The company reported Q1 adjusted earnings of $1.61 per share, which was an increase of 7.3% year-over-year, and surpassed consensus estimates of $1.52 per share. The snacks and beverage giant generated revenues of $18.3 billion in the first quarter, which was up by 2.2% year-over-year, beating analysts’ estimates of $18.1 billion.
PEP’s organic revenues rose by 2.7% in the first quarter. Organic revenues exclude acquisitions, divestitures, and foreign exchange impacts.
Looking forward, in FY24, the company expects at least a 4% rise in organic revenues and core earnings of $8.15 per share, implying a rise of 7% year-over-year.
Is PEP a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about PEP stock, with a Moderate Buy consensus rating based on 11 Buys and six Holds. Year-to-date, PEP stock has increased by more than 4%, and the average PEP price target of $190.65 implies an upside potential of 8% from current levels. However, these ratings are likely to change following PEP’s earnings today.
