PepsiCo(US:PEP) Benzingaยท2025-10-10 18:10Core Insights - PepsiCo's shares increased as investors reacted positively to its product refreshes and wellness innovations, alongside plans for consistent growth in snacks and beverages [1] Financial Performance - The company reported third-quarter adjusted earnings per share of $2.29, surpassing the analyst consensus estimate of $2.26 [1] - Quarterly sales reached $23.937 billion, reflecting a 2.6% year-over-year increase, exceeding expectations of $23.827 billion [1] Analyst Commentary - Bank of America Securities analyst Peter T. Galbo maintained a Neutral rating on PepsiCo, raising the price target from $150 to $155 [2] - The analyst adjusted the fiscal year 2025 EPS estimate to $8.12 from $8.04, citing a softer foreign exchange impact [2] - Near-term share performance is expected to depend on improvements in North America organic sales with upcoming product launches [2] Sales and Product Strategy - Sales in the PepsiCo Foods North America (PFNA) segment, including Siete, remained flat year-over-year, despite challenges in salty snacks [3] - The company aims for sequential organic growth through restaging of Lay's and Tostitos, focusing on health and wellness innovations across various brands [3] Volume and Growth Projections - Underlying volumes in the PepsiCo Beverages North America (PBNA) segment fell by 1% year-over-year, excluding a 300 basis points drag from exiting case-pack water [4] - The analyst updated the fiscal year 2026 quarterly organic growth projections to +2.1%, +2.4%, +3.6%, and +3.9%, indicating sequential improvement [4] Long-term Outlook - EPS estimates for fiscal years 2026 and 2027 were increased to $8.60 and $9.10, respectively [5] - The company is viewed as defensive amid a potential U.S. economic slowdown, with a balanced approach to growth, dividends, and buybacks [5] - PepsiCo shares were reported to be up 3.61% at $149.94 at the time of publication [5]