It's about that time again: Pepsi vs. Coke. No, not another taste test or another Battle of the Brands. It's time for the next quarterly results from these two soft drink titans.

Analysts surveyed by Thomson Reuters anticipate that PepsiCo Inc. (NYSE: PEP), global beverage and snack food giant, will report fourth-quarter earnings this week that are 9.1% higher that a year ago, or $0.88 per share. Revenue is expected to total $12.8 billion, which is 3.9% higher than last year. For the full year, the profit is expected to be $3.67 per share on revenue of $43.4 billion, up from $3.38 per share on $39.5 billion in 2007. PepsiCo's earnings met or beat estimates in four of the past five quarters, but missed by only two cents per share in the third quarter. The consensus recommendation of analysts remains to buy PEP. The share price fell to a 52-week low in January and is now 24.4% lower than it was a year ago. During the fourth quarter, PepsiCo declared a $0.42 per share quarterly dividend, agreed to acquire a Spitz International, and announced investments in China and Mexico.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Archer Daniels Midland Co. (NYSE: ADM) easily beat Q1 estimates due in part to higher prices.
• Bankrate Inc. (NASDAQ: RATE) posted strong Q3 numbers due in part to financial market volatility.
• Berkshire Hathaway Inc. (NYSE: BRK.A) Q3 results were hurt by derivatives loss and hurricane damage.
• Blackstone Group (NYSE: BX) had a brutal Q3 due to writedowns and a scarcity of deals.
• BMW Q3 earnings tumbled due to slower vehicle sales brought on by the economic downturn.
• Dean Foods Co. (NYSE: DF) fell short of Q3 estimates but reaffirmed its full-year guidance.
• Ford Motor Corp. (NYSE: F) reported a modest Q3 loss and a quickly dwindling stockpile of cash.
• Goldman Sachs Group (NYSE: GS) first-ever quarterly loss is predicted by at least one analyst.
• Kenexa Corp. (NASDAQ: KNXA) was downgraded by one analyst following its Q3 report.
• MasterCard Inc. (NYSE: MA) easily beat analysts' Q3 projections, sending shares soaring.
• Move Inc. (NASDAQ: MOVE) reported solid Q3 results on cost cutting and website revamp.
• Potash Corp. of Saskatchewan (NYSE: POT) price-target cuts since its Q3 earings report continue.
• Sprint Nextel Corp. (NYSE: S) broke even in Q3, but Wall Street had been expected a modest profit.
• Toyota Motor Corp. (NYSE: TM) net profit plunged due to the economic slump and strength of yen.
• Walt Disney Co. (NYSE: DIS) fell short of Q4 expectations despite popular High School Musical.
• World Wrestling Entertainment Inc. (NYSE: WWE) Q3 profits tumbled and revenues were flat.

MOST NOTEWORTHY: MedicNova, Transocean and Lennox were today's noteworthy initiations:

• Rodman & Renshaw is positive on MedicNova's (NASDAQ:MNOV) two primary products in development: MN-221, for the treatment of severe asthma and MN-166, an oral treatment for multiple sclerosis. The firm is also positive on MNOV's valuation; shares were initiated with an Outperform rating and $9 target.
  
• Transocean (NYSE:RIG) is UBS's Top Pick as they believe it is the primary beneficiary of rising deepwater dayrates. Shares were assumed with a Buy rating and $201 target.
  
• Suntrust initiated Lennox (NYSE:LII) with a Neutral rating and cites near-term visibility.

OTHER INITIATIONS:

• Dean Foods (NYSE:DF) was initiated with an Outperform rating and $29 target.
  
• Goldman started Parker-Hannifin (NYSE:PH) with a Neutral rating and $92 target.
  
• UBS assumed Hercules Offshore (NASDAQ:HERO) and Pride International (NYSE:PDE) with Neutral ratings and targets of $35 and $49, respectively.

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Abercrombie & Fitch Co. (NYSE: ANF) beat estimates on strong sales and higher profit margins.
• Baidu.com Inc. (NASDAQ: BIDU) profit soared on strong revenue from online marketing.
• Coca-Cola Co. (NYSE: KO) earnings and revenue surged in the fourth quarer.
• Dean Foods Co. (NYSE: DF) missed expectations on rising commodity costs and lower profit margins.
• Deere & Co. (NYSE: DE) posted better-than-expected profits as rising grain prices spurred demand.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted solid results on cost savings and debt reduction.
• Insight Enterprises Inc. (NASDAQ: NSIT) beat expectations and raised its guidance.
• LECG (NASDAQ: XPRT) posted a net loss despite a slight increase in revenue in the fourth quarter.
• Loews Corp. (NYSE: LTR) missed estimates due to profit decline in its CNA Financial (NYSE: CNA) affiliate.
• Marsh & McLennan Inc. (NYSE: MMC) missed estimates on weakness in its insurance services business.
• Playboy Enterprises Inc. (NYSE: PLA) posted disappointing results on weakness in publishing and TV.
• Qwest Communications International Inc. (NYSE: Q) fourth-quarter and full-year results met estimates.
• Sierra Wireless Inc. (NASDAQ: SWIR) beat esimates on the launch of new product s.
• Taser International Inc. (NASDAQ: TASR) profits doubled, which was in line with expectations.
• Visteon Corp. (NYSE: VC) posted a fourth-quarter loss on restructuring costs and write-downs.
• Waste Management Inc. (NYSE: WMI) beat espectations and offered 2008 guidance.
• Wyndham Worldwide Corp. (NYSE: WYN) earnings met expectations and were buoyed by lodging revenue.
• Zoltek Companies Inc. (NASDAQ: ZOLT) missed earnings estimates due to inventory buildup.

Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).

Visit AOL Money & Finance for more earnings coverage.

Dean Foods Co. (NYSE: DF) stock is falling this morning after the company posted an adjusted fourth-quarter profit of 27 cents per share, below analysts' expectations of 30 cents per share. Although DF reported an increase in sales, the company's profit suffered from rising commodity costs and lower gross profit margins. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on DF.

After hitting a one-year high of $50.50 in March, the stock hit a one-year low of $24.11 in September. This morning, DF opened at $24.37. So far today the stock has hit a low of $24.23 and a high of $26.08. As of 10:55, DF is trading at $24.82, down $2.11 (-7.8%). The chart for DF looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

Hershey (NYSE: HSY) is recently up $0.51 to $43.01 on renewed & unconfirmed takeover chatter. HSY call option volume of 10,491 contracts compares to put volume of 570 contracts. HSY November option implied volatility of 45 is above its 26-week average of 24 according to Track Data, suggesting traders buying calls for an upside move.

Dean Foods (NYSE: DF) is recently trading up $0.45 to $27.41 on renewed takeover chatter. DF, a leading food & beverage company, reduced 3Q & full-year earnings expectations on 10/2. DF is expected to announce full 3Q EPS on 11/8. DF November 30 calls have traded 108 times on transaction volume of 3,888 contracts above its open interest of 874 contracts. DF November option implied volatility is at 57 according to Track Data, suggesting larger price risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Dean Foods Co. (NYSE: DF) stumbled in early trading after announcing job cuts and a lower profit forecast due to higher costs and slowing sales. A Stifel Nicolaus analyst also cut his price target on the stock by $3 to $31 and lowered his earnings estimates for the stock. However, the analyst did maintain a buy rating on the company, as he expects cost pressures to ease. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on DF.

After hitting a one-year high of $50.50 in March, the stock fell to a one-year low of $24.11 in late September. This morning, DF opened at $24.66. So far today the stock has hit a low of $24.56 and a high of $26.77. As of 10:45, DF is trading at $26.12, down $0.17 (-0.6%). The chart for DF looks bearish but improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a December bear-call credit spread above the $30 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in 3 months as long as DF is below $30 at December expiration. Dena Foods would have to rise by more than 14% before we would start to lose money.

MOST NOTEWORTHY: Cadbury Schweppes, the food sector, Marsh & McLennan, Broadcom and Danone were today's noteworthy downgrades:

• Bear Stearns downgraded Cadbury Schweppes Plc (NYSE: CSG) shares to Underperform from Peer Perform as they are less confident the company will achieve its objective of divesting its beverage business at a reasonable price before the end of 2008.
  
• Bear downgraded the food group to Market Weight from Overweight based on valuations and macro economic trends. The firm downgraded Dean Foods Company (NYSE: DF) and Kellogg Company (NYSE: K) to Peer Perform from Outperform.
  
• JP Morgan downgraded shares of Marsh & McLennan Companies Inc (NYSE: MMC) to Neutral from Overweight citing management turnover which will impact the company's operating turnovers.
  
• JMP Securities downgraded Broadcom Corporation (NASDAQ: BRCM) to Market Perform from Outperform on valuation.
  
• Bear Stearns downgraded Groupe Danone (OTC: GDNNY) to Peer Perform from Outperform due to near-term headwinds; the firm prefers Nestle SA (OTC: NSRGY).

OTHER DOWNGRADES:

• Morgan Stanley downgraded the U.S. mortgage finance stocks to In Line from Attractive.
  
• Keefe Bruyette downgraded Legg Mason Inc (NYSE: LM) to Market Perform from Outperform.
  
• MercadoLibre Inc (NASDAQ: MELI) was downgraded at Merrill Lynch to Neutral from Buy.
  
• Oppenheimer downgraded Michael Baker Corporation (AMEX: BKR) to Neutral from Buy.

On Wednesday, Dean Foods Company (NYSE: DF), the country's largest processor and distributor of milk and soy products, accepted the resignation of Alan Bernon, the president of the company's Dairy Group, in what may be the beginning of a large-scale reorganization to stave off further losses as the company moves into its 3Q earnings period. Dean Foods is losing its own milk money. The company is facing bottom-line difficulty, some if it self-caused. Earlier in the year, Dean Foods reported that net income, earnings from continuing operations and diluted EPS were all on the increase. Unfortunately, so were prices for raw milk, a significant expense for the company. Supply of organic milk far exceeded demand for the product, driving down prices. For reasons that remain unclear, at the end of 1Q 2007, Dean Foods recapitalized its balance sheet and increased its debt load to $5.3 billion. Senior management then paid out more than $1.9 billion, $15 per share, for a one-time dividend. This drove the stock up to $37.48. Immediately thereafter, the company began having finance problems that have continued into the second quarter.

Dean Foods posted 2Q earnings well off last year's numbers. Diluted EPS was $0.30, way down from one year ago EPS of $0.55. Adjusted net income dropped by almost half to $41.6 million. At the same time, interest expense doubled to $88.9 million for the quarter. Sales continue to increase while operating income continues to decline. Capital expenditures were down by $10 million. Unfortunately cash flow was down by almost 10X that amount, $95 million.

Dean Foods Co. (NYSE: DF) opened at $31.83. So far today the stock has hit a low of $31.79 and a high of $32.20. As of 10:40 this morning, DF is trading at $31.87, up $0.28 (0.9%).

After hitting a one year high of $50.50 in March, the stock slumped to a year low of $30.50 in June. As Kevin Shult noted earlier, Merrill Lynch & Co. Inc. (NYSE: MER) upgraded Dean Foods from sell to neutral this morning, giving shares a lift to start the day. We can leverage this information into an options trade that will hopefully make a nice return for us. Technical indicators for DF are bearish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $30 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk and leverage returns. For this particular trade, we will make a 13.6% return in less than 6 weeks as long as DF is above $30 at August expiration. DF would have to fall by more than 5% before we would start to lose money.

DF hasn't been below $30 except for a few days since January and has shown support around $31 recently. This trade could be risky if the company's earnings (due out August 2) disappoint, but even if that happens, it looks like this position could be protected by the strong support the stock found just around $31 where it has bounced twice in the past month. Plus, its 200 day moving average is right at $31 and that could also provide some support.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: At publication time, Brent neither owns nor controls positions in DF.

MOST NOTEWORTHY: Nortel Networks Corp (NT), Bristol-Myers Squibb Co (BMY) and the select airliners were today's most noteworthy downgrades:

• Goldman cut Nortel Networks (NYSE: NT) to Sell from Neutral as the firm believes shares fully discount a successful execution on the cost restructuring.

• HSBC downgraded Bristol-Myers Squibb (NYSE: BMY) to Underweight from Neutral.

• JP Morgan sees few catalysts to drive airline shares higher and has downgraded the following stocks:

• AMR Corp (NYSE: AMR) and US Airways Group, Inc (NYSE: LCC) to Neutral from Overweight; Alaska Air Group, Inc (NYSE: ALK) and UAL Corp (NASDAQ: UAUA) to Underweight from Overweight; Continental Airlines, Inc (NYSE: CAL) and JetBlue Airways Corp (NADAQ: JBLU) to Underweight from Neutral.
  

OTHER DOWNGRADES:

• Keefe Bruyette downgraded Countrywide Financial Corp (NYSE: CFC) to Underperform from Market Perform, citing the impact of tighter credit standards for the move.

• OfficeMax Inc (NYSE: OMX) was cut to Underperform from Peer Perform at Bear Stearns.

• Matrix USA downgraded PepsiCo, Inc (NYSE: PEP) to Hold from Buy on valuation.

• Merrill Lynch downgraded Dean Foods Co (NYSE: DF) to Sell from Neutral.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MORE NOTEWORTHY: The aluminum sector, National City Corp (NCC), MGM Mirage (MGM) and Domtar Corp (UFS) were some of today's notable downgrades:

• Prudential downgraded the aluminum industry to Unfavorable from Favorable, cutting cut Alcoa Inc (NYSE: AA) to Neutral from Overweight and Alcan Inc (NYSE: AL) to Underweight from Overweight. Prudential cited the increased Chinese output growth and slowing U.S. demand for aluminum for the downgrades.

• Keefe Bruyette cut National City Corp (NASDAQ: NCC) to Underperform from Market Perform based on higher credit costs and near-term capital requirements.

• MGM Mirage (NYSE: MGM) was downgraded to Sell from Hold at Matrix USA citing valuation.

• Citigroup cut Domtar Corp (NYSE: UFS) to Sell from Hold with a $9 target based on valuation.

OTHER DOWNGRADES:

• Dow Chemical Co (NYSE: DOW) was removed from Credit Suisse's U.S. Focus List.

• Prudential cut Dean Foods Co (NYSE: DF) to Neutral from Buy based on valuation and volatile short-term raw milk prices.
  

• Barrington downgraded Cintas Corp (NASDAQ: CTAS) to Market Perform from Outperform with a $40 target based on poor Q3 earnings and lower revised guidance.

• Methanex Corp (NASDAQ: MEOH) was cut to Underperform from Market Perform at BMO Capital.

• Buffalo Wild Wings (NASDAQ: BWLD) was downgraded to Hold from Buy with a $67 target at Jefferies based on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: International Game Tech (IGT), Cephalon (CEPH) and CVS Corp (CVS) top today's list of upgrades.

• International Game Tech (NYSE:IGT) was upgraded to Buy from Hold at Soleil and to Outperform from Peer Perform at Bear Stearns. Both firms cited valuation as the reason.
• Cephalon, Inc. (NASDAQ:CEPH) was upgraded to Strong Buy from Buy at First Albany following the news that the company was granted a composition of matter patent covering Nuvigil by the U.S. Patent & Trademark Office.
• CVS Corp (NYSE:CVS) was added to Goldman Sachs Americas Conviction Buy List based on valuation.

OTHER UPGRADES:

• American Tech upgraded EDO Corp (NYSE:EDO) to Hold from Sell based on valuation.
• Dean Foods Company (NYSE:DF) was upgraded to Buy from Hold at A.G. Edwards based on valuation.
• Finally, Broadcom Corp. (NASDAQ:BRCM) was upgraded to Outperform from Market Perform at Raymond James.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).