UPDATE: PepsiCo Tops Q4 Expectations, Shares Rise

Shares of PepsiCo Inc. PEP rose more than 2% in pre-market trading after the company reported better-than-expected results for the fourth quarter and lifted its annual dividend by 7.3%. The Purchase, New York-based company reported a quarterly profit of $1.31 billion, versus a year-ago profit of $1.74 billion. On a per-share basis, earnings shrank to $0.87 from $1.12. Excluding items, the company earned $1.12 per share. Its revenue dropped 1% to $19.95 billion, while organic revenue gained 5%. However, analysts were expecting earnings of $1.08 per share on revenue of $19.66 billion. Organic revenue at Frito-Lay North America division gained 3.5% in the quarter, while Quaker Foods North America organic revenue came in even with the previous year. Organic revenue for Latin America Foods rose 11%, while PepsiCo Americas Beverages organic revenue surged 3% in the quarter. Developing and emerging market net revenue slipped 4% in the quarter. Core gross margin widened 70 basis points, while core operating margin expanded 15 basis points in the quarter. The company's carbonated soft drink volume in North American market declined 2%, while noncarbonated volumes gained 4%. Chairman and CEO Indra Nooyi said, "As we look ahead to 2015, we expect to again deliver results consistent with our long-term financial objectives, despite the anticipated challenging and volatile global macro environment. Further, returning cash to shareholders remains a top priority, and we plan to return approximately $8.5 to $9 billion to shareholders through both higher dividends and share repurchases." For fiscal 2015, PepsiCo projects 7% core constant currency EPS growth compared to FY14 core EPS of $4.63. It expects organic revenue growth in mid-single digits compared to 2014. PepsiCo shares gained 2.06% to $100.01 in pre-market trading.