PepsiCo, Inc. (NYSE:PEP) early Wednesday posted market-beating first quarter earning and backed its full-year outlook.

Written by StockNews.com

The Purchase, NY-based beverage and snack food giant reported Q1:

• earnings per share (EPS) of $0.94, which was $0.02 better than the Wall Street consensus estimate of $0.92,
• revenues rose 1.6% from last year to $12.05 billion, also topping analysts’ view for $11.98 billion...[and]
• gross margin fell 45 basis points in the latest period, however,
• operating margins rose 240 basis points.

Looking ahead, PEP:

• reiterated its previously announced 2017 EPS guidance of $5.09, which is below the $5.14 that analysts are looking for,
• sees organic revenue growth of “at least” 3%.

Chairman and CEO Indra Nooyi commented via press release:

“We achieved solid revenue growth in the first quarter underpinned by global volume growth and positive net price realization, despite challenging food and beverage industry trading conditions in North America and continued volatility in a number of developing and emerging markets.

Our first quarter results were in line with our expectations, and we are on track to achieve our financial objectives for 2017.”

PepsiCo, Inc. shares were unchanged in premarket trading Wednesday. Year-to-date, PEP has gained 9.86%, versus a 7.18% rise in the benchmark S&P 500 index during the same period.

PEP currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #2 of 25 stocks in the Beverages category.