Pepsi's fourth-quarter 2013 adjusted earnings of $1.05 beat the Zacks Consensus Estimate by 4%. However, earnings declined 3.5% year over year as aggressive marketplace investments, currency headwinds and higher tax rates offset pricing and productivity gains. Organic revenues increased 4.1% as higher pricing and strong snacks performance offset weakness in European and American beverages. Overall, we are encouraged by the company's strong brand portfolio, its product and geographic diversity, improved productivity, increased brand building investments and market execution, innovation efforts and solid cash flow generation. Also, the company increased 2014 cash returns by 35% and announced a new $5 billion productivity program at the first quarter conference call. However, a challenging consumer spending environment and continued sluggish volumes in the North American beverage business keeps us on the sidelines.
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