5:04 AM
PepsiCo cuts growth goal for second time
Addison Ray
NEW YORK | Thu Feb 10, 2011 7:35am EST
NEW YORK (Reuters) - PepsiCo Inc (PEP.N) 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 percent in premarket trading, despite posting a fourth-quarter profit that beat Wall Street estimates by a penny.
PepsiCo said net income fell 5 percent to $1.37 billion, or 85 cents per share, in the quarter that ended on December 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 I/B/E/S.
Its sales jumped 37 percent 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 percent to 8 percent. In October it said it expected growth of 11 to 12 percent, down from a prior forecast of 11 to 13 percent.
Its shares fell $1.13 to $63.29 in premarket trading, from Wednesday's close of $64.42 on the New York Stock Exchange.
(Reporting by Martinne Geller, editing by Maureen Bavdek)