PepsiCo’s (PEP) first-quarter financial results have beaten Wall Street forecasts as its international sales strengthen.
The Purchase, New York-based soft drink and packaged food company reported earnings per share (EPS) of $1.61 U.S. compared to $1.52 U.S. that was expected among analysts.
Revenue in the January through March quarter totaled $18.25 billion U.S. versus $18.07 billion U.S. that was estimated for the company. Sales were up 2.3% from a year earlier.
The earnings beat comes despite an American recall during the period of some Quaker Foods cereal and bars that lowered PepsiCo’s overall sales volumes.
Quaker Foods North America sales volumes fell 22% year-over-year in the first quarter. However, the company said strong overseas sales helped to offset the decline stateside.
PepsiCo’s products include soft drinks such as Pepsi and Mountain Dew, the Gatorade sports drink, Lays and Doritos potato chips, and Quaker oatmeal, among others brands.
In terms of guidance, PepsiCo expects to deliver 4% revenue growth this year and 8% growth in its earnings per share for all of 2024.
Analysts at Morgan Stanley (MS) recently upgraded PepsiCo stock to a “buy” equivalent rating from “hold” previously, and gave the shares a $190 U.S. price target, implying 8% growth from current levels.
The stock of PepsiCo is currently trading at $176.46 U.S. per share, having declined 5% in the last 12 months.
