Evening Update: PepsiCo Expects Earnings Boost From Frito-Lay Sales

PepsiCo(PEP Quote) said it sees its first-quarter earnings in line with the 13-analyst estimate of 28 cents a share. The company attributed the solid profit to strength in its Frito-Lay snack food division and its juice business, but added that high prices were problematic for its North American Pepsi-Cola unit.

Chairman and CEO Roger Enrico said he also expects fiscal 2000 earnings to meet the 16-analyst estimate of $1.38 a share. Enrico said the company's share repurchasing program is being exercised faster than expected.

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Seagate Technology (SEG Quote), the leading maker of computer disk drives, said it would be acquired by an investor group, Silver Lake Partners, that includes its management in a complex deal that would sell its 33% stake in Veritas Software (VRTS Quote) back to that company.

The Veritas stake accounts for most of Seagate's stock market value. The companies valued the stock and cash deal at $20.2 billion.

For more on Seagate's acquisition, check out a story written this evening by TheStreet.com-NYTimes.com joint newsroom.

Separately, Standard & Poor's said that Veritas would replace Pep Boys (PBY Quote) (but what'll happen to Manny, Mo and Jack?) in the S&P 500. S&P added that Edwards Lifesciences(EW Quote) will fill Veritas' former spot in the S&P MidCap 400 and Pep Boys would take over 911 services provider Rural/Metro(RURL Quote) in the S&P SmallCap 600.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 82.61 +0.8% 11,018.73 -4.2% S&P 500 0.79 +0.1% 1508.52 +2.7% Nasdaq 189.22 -3.9% 4644.67 +14.1% Russell 2000 16.04 +2.9% 543 +7.6% TSC Internet 93.01 -7.6% 1124.08 +2.6% NOTE CHANGE PRICE YIELD 10-Year Treasury 1/32 102 15/32 6.164%

In other postclose news (earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified):

Mergers, acquisitions and joint ventures

Telco AAPT and America Online (AOL Quote) said they have entered a joint pact to run the AOL Australia unit. Both parties would hold a 50% interest in the venture, which would set up a Web portal using AOL wireless technologies to the domestic wireless consumer market. The financial terms of the deal not released.

Earnings/revenue reports

Cabletron(CS Quote), a computer networking manufacturer, posted fourth-quarter pro forma earnings of 15 cents a share, a penny better than the 13-analyst estimate and up from the year-ago 2-cent profit.

Chairman and CEO Piyush Patel said the Cabletron is ready to covert itself into a holding company and four separate units which would concentrate on Internet infrastructure. Cabletron said it would spin off these four companies to shareholders.

4Front(FFTI Quote), a information technology provider, reported fourth-quarter earnings of 11 cents a share, a penny better than the three-analyst estimate but down from the year-ago 16-cent profit. The company said it would assume a $15 million reorganization charge in the first half of fiscal 2001 to boost its e-business and consolidate operating expenses.

Finish Line(FINL Quote), a sportswear retailer, reported fourth-quarter earnings of 26 cents a share, beating the six-analyst estimate of 20 cents a share but down from the year-ago 27-cent profit.

Offerings and stock actions

Micron Technology(MU Quote) set a 2-for-1 stock split.

For a look into this evening's after-hours trading action, please check out TheStreet.com's The Night Watch.