PepsiCo(PEP Quote - Cramer on PEP - Stock Picks) 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.
Seagate Technology (SEG Quote - Cramer on SEG - Stock Picks), 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 - Cramer on VRTS - Stock Picks) 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 - Cramer on PBY - Stock Picks) (but what'll happen to Manny, Mo and Jack?) in the
S&P 500. S&P added that
Edwards Lifesciences(EW Quote - Cramer on EW - Stock Picks) will fill Veritas' former spot in the
S&P MidCap 400 and Pep Boys would take over 911 services provider
Rural/Metro(RURL Quote - Cramer on RURL - Stock Picks) 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 - Cramer on AOL - Stock Picks) 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 - Cramer on CS - Stock Picks), 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 - Cramer on FFTI - Stock Picks), 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 - Cramer on FINL - Stock Picks), 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 - Cramer on MU - Stock Picks) 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.
Tara Murphy
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