Shares of PepsiCo (NASDAQ: PEP) were up in pre-market trading on Tuesday after the snacks and beverage giant reported earnings for its first quarter FY23 of $1.50 per share versus $1.29 per share in the same period last year and beating Street estimates of $1.38 per share.
The company’s sales soared by 10.2% year-over-year to $17.85 billion in Q1 and surpassing analysts’ expectations of $17.2 billion.
Looking forward, management also raised its FY23 forecast and now expects its revenues to grow organically by 8% year-over-year from a prior forecast of 6% and EPS to rise by 9% year-over-year on a constant currency basis versus its earlier forecast of 8%. In FY23, PEP expects to return cash of $7.7 billion to its shareholders including “dividends of $6.7 billion and share repurchases of $1.0 billion.”
Analysts are cautiously optimistic about PEP stock with a Moderate Buy consensus rating based on five Buys and six Holds.
