PepsiCo cuts growth goal for second time

PepsiCo Inc cut its full-year earnings growth target for the second time on Thursday, citing higher commodity costs, a difficult economy and investments in emerging markets.

The maker of Pepsi-Cola and Frito Lay snacks saw its shares fall 1.8% in premarket trading, despite posting a fourth-quarter profit that beat Wall Street estimates by a penny. PepsiCo said net income fell 5% to USD 1.37 billion, or 85 cents per share, in the quarter that ended on December 25, from USD 1.43 billion, or 90 cents per share, a year earlier. Excluding items, earnings were USD 1.05 per share, topping analysts' average estimate of USD 1.04 per share, according to Thomson Reuters I/B/E/S. Its sales jumped 37% to USD 18.16 billion, helped by the acquisition last year of its two largest bottlers. PepsiCo said it now expects full-year earnings to grow 7% to 8%. In October it said it expected growth of 11 to 12%, down from a prior forecast of 11 to 13%. Its shares fell USD 1.13 to USD 63.29 in premarket trading, from Wednesday's close of USD 64.42 on the New York Stock Exchange.