Stocks to Watch: Pepsi, Cisco, Sirius (Update 1)

Corrected Sirius fourth-quarter revenue figures

NEW YORK ( TheStreet) -- PepsiCo ( PEP) said Thursday it will cut 8,700 jobs as it looks to save $1.5 billion by 2014.

The beverage and snack food giant will cut 3% of its global work force in a cost-cutting measure as it initiates a $3 billion share buyback program and boosts its dividend by 4%.

The announcement came as the maker of Tropicana juice and Doritos chips joined rival Coca-Cola ( KO) in reporting better-than-expected quarterly results.

Pepsi earned $1.15 a share in the fourth quarter on revenue that climbed 11% to $20.16 billion. Analysts expected to see earnings of $1.13 a share on sales of $19.91 billion.

Shares dropped 2% to $65.43 in premarket trading on Thursday.

Dow component Cisco Systems ( CSCO), the networking-equipment maker, topped analysts' earnings expectations and raised its quarterly dividend by more than 30%.

Cisco reported non-GAAP earnings of $2.6 billion, or 47 cents a share, in its fiscal second quarter on revenue of $11.5 billion.

Analysts were expecting Cisco to report earnings of 43 cents a share on revenue of $11.23 billion.

Cisco shares were down 1% at $20.23 in premarket trading.

Sirius XM Radio ( SIRI) reported results in line with Wall Street expectations Thursday as the company swung to a profit with record subscription levels.

The satellite radio operator reported profits of $71.3 million, or a penny a share, after reporting a loss of $81.4 million a year earlier. Revenue rose 6.5% to $783.7 million in the fourth quarter. Analysts expected the company to post fourth-quarter earnings of 1 cent a share on revenue of $785.5 million.

The company also saw subscriptions climb to 21.9 million, with net subscriber additions soaring 65% to 542,966 in the October to December period. Sirius said it expects to add 1.3 million net subscribers this year.

Sirius shares were slumping 2.7% to $2.13.

Groupon ( GRPN) posted a loss in its first quarterly report as a public company.

Groupon, the daily deals Web site, posted a pro forma adjusted fourth-quarter loss of $9.8 million, or 2 cents a share, on revenue of $506.5 million, more than triple the revenue recorded in the year-earlier equivalent period.

The company said adjusted results in the latest quarter reflect a negative impact of 7 cents a share from high taxes on its international operations.

Analysts were expecting adjusted profit of 3 cents a share on revenue of $475 million in the quarter.

Groupon shares were falling 11% to $22.

Google ( GOOG) will receive Justice Department approval of its $12.5 billion acquisition of Motorola Mobility Holdings ( MMI) as early as next week, The Wall Street Journal reported, citing people familiar with the matter.

The approval from antitrust regulators would allow Google to expand its arsenal of technology patents as it seeks to further challenge Apple's ( AAPL) iPhone in the smartphone war with its Android software.

Google shares were gaining 0.3% to $611.70. Motorola shares were up 0.6% to $39.20.

Dunkin' Brands ( DNKN) returned a profit in the fourth quarter as Dunkin' Donuts store traffic improved.

The operator of Dunkin' Donuts and Baskin-Robbins ice cream chains reported earnings of 30 cents a share on revenue of $168.5 million, compared to a 16-cent loss a year earlier. Analysts expected to see profit of 28 cents a share on sales of $160.6 million.

Dunkin' shares were advancing 1.7% to $29.50.

Credit Suisse ( CS), Switzerland's second-biggest bank, posted a fourth-quarter loss of 637 million Swiss francs ($698 million), wider than analysts' expectations of a loss of 431 million francs. A year earlier, the bank earned 841 million francs.

"Our performance for the fourth quarter 2011 was disappointing," said CEO Brady Dougan. "It reflects both the adverse market conditions during the period and the impact of the measures we have taken to swiftly adapt our business to the evolving market and regulatory requirements."

Credit Suisse recorded a restructuring charge in the quarter of 981 million francs.

The lender's shares were off 2.3% at $27.

Diamond Foods ( DMND), the snack company, said Wednesday it needs to restate earnings for the past two years to properly account for certain payments to walnut growers.

The company also placed CEO Michael Mendes and CFO Steven Neil on administrative leave, and said it's working to complete the restatements and file required reports with the Securities and Exchange Commission, which is probing Diamond Foods along with the Justice Department.

Shares of the seller of Emerald nuts and Pop Secret popcorn tumbled 40% to $22 in premarket trading Thursday.

-- Written by Joseph Woelfel and Kaitlyn Kiernan

>To contact the writer of this article, click here: Joseph Woelfel or Kaitlyn Kiernan

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