UPDATE: PepsiCo Tops Q4 Expectations, Shares Rise

Shares of PepsiCo Inc. (NYSE: 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.