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 $1.37 billion, or 85 cents per share, in the quarter that ended on Dec. 25, from $1.43 billion, or 90 cents per share, a year earlier.

Excluding items, earnings were $1.05 per share, topping analysts' average estimate of $1.04 per share, according to Thomson Reuters IBES.

Its sales jumped 37% to $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 percent, down from a prior forecast of 11 to 13%.

Its shares fell $1.13 to $63.29 in premarket trading, from Wednesday's close of $64.42 on the New York Stock Exchange.