PepsiCo lowered its full-year earnings expectations Thursday, citing increased costs from tariffs and a pullback in consumer spending.
The maker of Pepsi beverages and Frito-Lay snacks said it now expects its core earnings per share to be even with last year. Previously it expected mid-single-digit percentage growth.
A 25% tariff on imported aluminum is among those hitting PepsiCo and other beverage makers.
PepsiCo’s net revenue fell 1.8% to $17.9 billion in the first quarter as its sales volumes dropped around the world. That was slightly higher than the $17.8 billion Wall Street was expecting, according to analysts polled by FactSet.
The Purchase, New York, company’s net income fell 10% to $1.8 billion. Adjusted for one-time items, PepsiCo earned $1.48 per share. That was slightly lower than the $1.49 analysts forecast.
Shares of PepsiCo slipped 1% before the opening bell Thursday.