Shares of PepsiCo (NASDAQ: PEP) rose in pre-market trading after the beverage giant reported earnings for the third quarter of Fiscal Year 2023. The company’s Q3 earnings per share came in at $2.24, which beat analysts’ consensus estimate of $2.15 per share.
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Sales increased by 6.7% year-over-year to $23.45 billion in the third quarter as compared to analysts’ expectations of $23.41 billion.
Looking forward, management now expects its core constant currency EPS to grow by 13% from its prior guidance of a growth of 12%. PepsiCo reiterated its FY23 guidance and estimates its organic revenues to rise by 10% year-over-year and expects to return total cash to shareholders of around $7.7 billion, including dividends of $6.7 billion and share repurchases of $1 billion.
In FY23, the company forecasted core EPS of $7.54, up from its prior estimate of $7.47, and an increase of 11% year-over-year.
PepsiCo stated in its press release that in FY24, it anticipates organic revenues to rise in the range of 4% to 6% and core constant currency EPS to grow in a “high-single-digit percentage.”
Is PepsiCo a Buy Sell or Hold?
Overall, analysts are cautiously optimistic about PEP stock with a Moderate Buy consensus rating based on 11 Buys and five Holds.
