PepsiCo shares gain for a third straight session on Tuesday, first-quarter results top estimates, but full-year forecast withdrawn

PepsiCo Inc’s (PEP) first-quarter results, reported on Tuesday, exceeded Wall Street estimates, but the company withdrew its full-year forecast due to global uncertainty stemming from the coronavirus pandemic.

However, the beverage company did not state what the direct impact of the virus on its business was.

PepsiCo shares closed higher for a third consecutive trading session on NASDAQ on Tuesday. The stock went up 1.38% ($1.86) to $136.32, after touching an intraday high at $137.52, or a price level not seen since April 17th ($137.98).

Shares of PepsiCo Inc have retreated 0.26% so far in 2020 compared with an 11.37% loss for the benchmark index, S&P 500 (SPX).

In 2019, PepsiCo’s stock went up 23.71%, thus, it underperformed the S&P 500, which registered a 28.88% gain.

PepsiCo reported a 7.7% year-on-year growth in its first-quarter net revenue to $13.9 billion, supported by a massive advertising campaign during the Super Bowl. In comparison, analysts on average had expected revenue of $13.21 billion.

Net income attributable to common shareholders dropped to $1.34 billion ($0.96 per share) during the quarter ended on March 21st, from $1.41 billion ($1.00 per share) in the same period a year ago.

Meanwhile, earnings per share, which exclude special items, were reported at $1.07 during the latest quarter, while exceeding a consensus of estimates pointing to earnings of $1.03 per share.

PepsiCo also maintained a projection to pay $5.5 billion in dividends and to repurchase shares worth $2 billion during the current fiscal year.

Analyst stock price forecast and recommendation

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding PepsiCo Inc’s stock price, have a median target of $144.00, with a high estimate of $160.00 and a low estimate of $125.00. The median estimate represents a 5.63% upside compared to the closing price of $136.32 on April 28th.

The same media also reported that at least 10 out of 19 surveyed investment analysts had rated PepsiCo Inc’s stock as “Buy”, while 8 – as “Hold”.