PepsiCo (NASDAQ:) issued FY organic revenue forecast that beat analyst estimates, driving the company’s shares up on Tuesday.

PEP reported Q1 core earnings per share of $1.29. This is an increase of $1.21 over the previous year and more than the analyst estimates at $1.23 per shares. In net revenue, the company saw an increase of 9.3% YoY. This was above consensus estimates of $15.57billion.

Analysts expected a 9.68% increase in organic revenue. However, the company’s organic revenue increased 13.7%. PepsiCo Beverages NA saw an increase in organic revenue of 13%. This is more than the 10% growth expected.

PEP now anticipates FY organic revenues growth of 8.8% as opposed to the previous forecast which was 6%. PEP expects to return $7.7B to shareholders and to continue to experience FY core constant currency growth of 8%.

The company took an impairment charge of $241 million after taxes following Russia’s invasion of Ukraine.

“In connection with the deadly conflict in Ukraine, we recognized charges related to property, plant and equipment impairment, allowance for expected credit losses, inventory write-downs and other costs,” the company said.

Goldman Sachs analyst Bonnie Herzog lauded “very strong” results.

“PEP reported a very strong start to the year with Q1 results that delivered an impressive beat on both the top and bottom lines… We believe the stock will react favorably to these strong Q1 results and better-than-expected outlook today. PEP’s brand portfolio is strong (esp. Frito Lay) and long-term growth opportunities in Beverages, we reiterate our Buy (on CL) rating on the stock.”

Callum Elliott from Bernstein is bearisher on PEP stock, as he reiterated his Underperform rating with a target price of $145.00 per share.

The analyst noted that a “slight cut to 2022 EPS forecast likely ‘somewhat’ dampens enthusiasm for ‘solid’ 1Q results,” Elliott wrote in a note.

By Senad Karaahmetovic