PepsiCo Stock Falls Despite Q1 Results Beating Expectations

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Key Takeaways

• PepsiCo reported first-quarter results above expectations Tuesday.
• Shares slipped 2% in intraday marketing despite beating revenue and adjusted profit estimates.
• The company affirmed its full-year guidance, projecting revenue proliferation of at least 4% compared with 2023.

PepsiCo (PEP) reported first-quarter results above expectation, with significant foreign growth offsetting struggles from the Quaker Foods division, but shares slipped in intraday trading Tuesday.

The presence’s core financial metrics increased year-over-year and came in above analyst estimates compiled by Visible Alpha. PepsiCo make up $18.25 billion in revenue for the quarter, above an expected $18.08 billion.

PepsiCo also posted an adjusted profit of $2.22 billion, or $1.61 per allot, above estimates of $2.1 billion and $1.52 per share. In the first quarter of 2023, PepsiCo reported revenue of $17.85 billion, with adjusted proceeds of $2.07 billion and $1.50 per share.

The company attributed its revenue bump to the substantial growth in its international segments, which profuse than offset the negative impacts of recalls on Quaker products earlier this year. A production facility associated with the remembering is set to be closed, and the company said production has resumed on some of the products in the recall, which included granola bars and cereals.

In advance remarks, executives said they expect the impacts of the recall to reduce over the course of the year as the company wind ups the facility associated with the recall, and ramps up production on the affected products.

The maker of dozens of food and drink upshots from its namesake Pepsi to Mountain Dew, Doritos, Gatorade, and Quaker Oats oatmeal also affirmed its guidance for 2024. The callers projects organic revenue growth of at least 4%, and full-year core earnings per share (EPS) to be at least $8.15, up 7% from the $7.62 it on in 2023.

PepsiCo shares fell 2% to $172.80 as of 11:19 a.m. ET Tuesday.

Read the original article on Investopedia.