PEP Stock Forecast: Surge Due to Q3 Earnings Surprise

PepsiCo Shines in Q4 Report with Impressive Revenue Growth

PepsiCo Inc. (PEP:NSD) has made news in the financial world with a remarkable performance in its third-quarter earnings report for fiscal year 2023. The iconic beverage conglomerate gained momentum in pre-market trading, drawing attention from investors and analysts alike. The standout moment in the report was the company’s earnings per share (EPS) figure, which stood at an impressive $2.24 for the third quarter, surpassing the consensus estimate of $2.15 per share as projected by analysts.

 

Robust sales growth continues:

One of the key drivers of PepsiCo’s strong performance was its robust sales growth. The company reported sales totaling $23.45 billion in the third quarter, marking a substantial increase of 6.7% compared to last year. This surpassed analysts’ expectations, who had anticipated sales to reach approximately $23.41 billion.

 

Positive Outlook and Increased Guidance:

PepsiCo’s management has expressed optimism about the company’s future prospects. Notably, the firm has revised its core constant currency EPS growth projection upward, now anticipating a growth rate of 13%, up from the previous guidance of 12%.

Additionally, the company reaffirmed its guidance for Fiscal Year 2023 (FY23), foreseeing organic revenue growth of 10% year-over-year. PepsiCo also intends to distribute a total of $7.7 billion to its shareholders, comprising $6.7 billion in dividends and $1 billion in share repurchases.

 

Upward Revisions for FY23 Earnings:

Looking ahead to FY23, PepsiCo has boosted its core EPS estimate to $7.54, up from the prior estimate of $7.47, indicating an impressive 11% year-over-year increase.

 

Promising projections for FY24:

In its press release, PepsiCo provided insights into its expectations for Fiscal Year 2024 (FY24). The company anticipates organic revenue growth between 4%-6%, coupled with a “high-single-digit percentage” increase in core constant currency EPS.

 

PEP Stock Forecast:

According to the PEP stock forecast from 11 analysts, the average target price is USD 194.71. The highest and lowest values stand at USD 212 and USD 170 for October 2024, respectively.

 

Analyst Projections: 

Currently, PEP stock holds a strong buy rating based on the average analyst rating. Stock Target Advisor’s analysts are slightly bullish. This assessment is based on 8 positive and 5 negative signals, reflecting overall confidence in the stock’s performance.

PEP Ratings by Stock Target Advisor

Stock Performance Overview:

At the last closing, the stock price was USD 161.36. This price has changed by -4.62% over the past week, -8.46% over the past month, and -0.15% over the last year.

 

Conclusion:

PepsiCo’s Q3 earnings report for FY23 has impressed investors and market analysts alike. With robust sales growth, increased earnings guidance, and promising projections for the future, the beverage giant appears to be on a solid trajectory. The company’s positive outlook is supported by analyst consensus and a Strong Buy rating, reinforcing confidence in PepsiCo Inc.’s stock performance. Despite short-term fluctuations, the stock’s long-term stability remains a key factor contributing to its appeal in the market.

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