Market Close - Pepsi, Gap, Dominos, Intel Earnings

Fairly flat day, after that insane run-up yesterday (Monday).  Not a lot of enthusiasm on the buy side, but why should there be?  Senator Dodd is proposing legislation that would ban foreclosures for 90 days.  The man is NOT thinking about the effects of such an action, and he should shelve this proposal immediately.  This is not as simple as saying “Ok, everybody just stop!  Give us more time to think of something.”  What will happen to the mortgage servicers, or anyone/anything else related to those mortgages.  NO RATIONAL thought is being employed here.

Intel (INTC), Pepsi (PEP), The Gap (GPS) and Dominos (DPZ) earnings follow:

INTC (Intel) REPORTS Q3 $0.35 V $0.34E, R $10.2B V $10.26BE
- Guides Q4 Rev $10.1B-$10.9B v $10.8Be.
- Guides Q4 GMs 59% (+/- a couple of points)
- Q3 GMs 58.9% v 55.4% q/q.
- CAPEX: Sees capital spending at $5B plus or minus $100M as compared to the prior expectation of $5.2B plus or minus $200M

PEP (Pepsi) REPORTS Q3 $1.06 V $1.08E (EX ITEMS), R $11.24B V $11.22BE, TO CUT 3300 JOBS WORLDWIDE (1.7% OF THE TOTAL WORKFORCE), TO CLOSE 6 PLANTS
- Guides FY08 EPS $3.67-3.68 v $3.74e (Prior guidance at least” $3.72)
- The company expects that the recent surge in the U.S. dollar will likely have an adverse impact on Q4 EPS.  At current rates, the incremental impact would be about $0.04-$0.05 per share.

- FX added 3% to the revenue growth, implying ex FX Rev ($10.90B v $11.22Be)

- Q3 Frito-Lay North America +9% y/y
- Q3 Quaker Foods North America  -9% y/y
- Q3 Latin America Foods +3% y/y
- Q3 PepsiCo Americas Beverages -3% y/y
- Q3 United Kingdom & Europe +1% y/y
- Q3 Middle East, Africa & Asia +9% y/y

GAP REPORTS Q2 -$0.35 V -$0.32E, $2.20B V $2.22BE, SSS +2.8%
- Gross Margin 29.85% v 31.28% y/y

DPZ (Dominos Pizza) REPORTS Q3 $0.13 V $0.21E , R $323.6 V $336.8ME, DOMESTIC SSS -3.4%
- Q3 SSS US company-owned stores -3.4% y/y
- Q3 SSS US franchise stores -6.4% y/y
- Q3 SSS International stores +5.4% y/y

Posted in Categories: Contributor, Eurozone, External Research, Stocks, Technology, USA.

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