PepsiCo Inc (NASDAQ:PEP) reported worse-than-expected second-quarter FY24 revenue on Thursday.
The company reported second-quarter sales growth of 0.8% year-on-year to $22.501 billion, missing the analyst consensus estimate of $22.599 billion. Adjusted EPS of $2.28 beat the consensus estimate of $2.16, according to data from Benzinga Pro.
Chairman and CEO Ramon Laguarta, said, "During the second quarter, our business delivered net revenue growth, strong gross and operating margin expansion and double-digit EPS growth, remaining agile despite facing difficult net revenue growth comparisons versus the prior year, subdued category performance within North America convenient foods and the impacts associated with certain product recalls at Quaker Foods North America."
PepsiCo expects approximately 4% organic revenue growth for FY24 (previously at least 4%) and at least 8% increase in core constant currency EPS.
PepsiCo shares rose 2.3% to trade at $167.73 on Friday.
These analysts made changes to their price targets on PepsiCo after the company reported quarterly results.
- RBC Capital analyst Nik Modi maintained PepsiCo with a Sector Perform, while cutting the price target from $180 to $177.
- JP Morgan analyst Andrea Teixeira maintained the stock with a Neutral and slashed the price target from $184 to $182.
- Barclays analyst Lauren Lieberman maintained PepsiCo with an Overweight rating, while lowering the price target from $180 to $179.
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