PepsiCo Lowers Full-Year Earnings Forecast On Tariff Costs

PepsiCo has cut its full-year earnings outlook, citing the financial burden of tariffs and weaker consumer demand, Dee-Ann Durbin reported for the Associated Press (AP).

A 25% tariff on imported aluminum is one of the key factors weighing on PepsiCo. I Photo: PepsiCo Facebook

The company now expects flat core earnings per share compared to last year, down from earlier guidance of mid-single-digit growth. A 25% tariff on imported aluminum is one of the key factors weighing on PepsiCo and other beverage makers.

First-quarter net revenue dropped 1.8% to $17.9 billion—slightly ahead of Wall Street’s expectations. Net income fell 10% to $1.8 billion. Adjusted for one-time items, earnings came in at $1.48 per share, just shy of the $1.49 analysts predicted, according to FactSet.