PepsiCo Not as Good as it Looks

24/7 Wall St.

PepsiCo Inc. (NYSE: PEP) reported fiscal third-quarter results before markets opened this morning. The food and beverage company posted adjusted diluted earnings per share (EPS) of $1.21 on revenues of $16.65 billion. In the same period a year ago, the company reported EPS of $1.25 on revenues of $17.58 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $1.16 and $16.9 billion in revenues.

On a GAAP basis, EPS for the quarter totaled $1.20, including a $0.05 gain on mark-to-market commodity hedges.

The company reaffirmed full-year revenue and EPS guidance. On a constant currency basis the company expects earnings to fall by approximately 5% from last year’s EPS of $4.40. Taking into account the foreign currency translation effect (a negative 3%), the company is looking at EPS of around $4.05 to $4.06. The consensus estimate calls for EPS of $4.06.

Revenue for the full…

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Mortgage Applications Down, Rates Up Slightly

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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 4.2% in the group’s seasonally adjusted composite index compared with last week’s decrease of 1.2%. Unadjusted, the composite index fell by 14%.

Applications for refinancing fell 5% (seasonally adjusted), while seasonally adjusted purchase applications increased by 1% from the previous week. Unadjusted, the purchase index fell 9% compared with the previous week and rose 12% compared with the same week a year ago. This week’s results include an adjustment for the Columbus Day holiday.

The refinancing rate fell slightly to 82% of total applications, down 1% from a week ago. About 96% of the applications were seeking fixed-rate loans, consistent with last week’s reading.

The average contract interest rate for a conforming 30-year fixed-rate mortgage rose slightly from 3.56% to 3.57%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from…

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U.S. Embassy in Stockholm evacuated after suspicious envelope found

This Just In

[Updated at 8:35 a.m. ET] The all-clear has now been given and staffers have begun to return to the building, CNN affiliate TV4 said.

[Posted at 7:32 a.m. ET] The U.S. Embassy in Stockholm, Sweden, was evacuated Wednesday after the discovery of a suspicious envelope with white powder inside, Stockholm police said.

Police are moving the envelope to a secure location for examination, Stockholm police spokesman Albin Navery said.

CNN’s Saskya Vandoorne contributed to this report.

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U.S. Bancorp Posts Record Q3 Profit

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U.S. Bancorp (NYSE: USB) reported third-quarter 2012 results before markets opened this morning. The Minneapolis-based bank posted earnings per share (EPS) of $0.74 on revenues of $5.18 billion. In the same period a year ago, the company reported EPS of $0.64 on revenues of $4.74 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.74 and $5.14 billion in revenues.

The company’s chairman and CEO said:

Our third quarter earnings included continued strong mortgage banking activity, which contributed to our growth in fee income, residential real estate loans and loans held for sale. Solid new lending activity outside of mortgage also helped to grow our balance sheet, particularly in commercial loans. … during the third quarter we were able to return 67 percent of our earnings to shareholders in the form of dividends and share buybacks — consistent with our goal of returning…

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24/7 Wall St.

Bank of America Corp. (NYSE: BAC) has reported earnings of $0.00 per share, or $340 million in net income, after items on revenue of $20.43 billion. Thomson Reuters estimates were -$0.07 per share and $21.89 billion in revenue. We would note that there were some previously announced items that took away $0.28 in EPS and also total revenue on a debit valuation adjustment and fair value option basis was listed as $22.529 billion.

The bank still trades at an incredible discount to its book value and that book value rose in the quarter. Tangible book value per share rose to $13.48 versus $13.22 one quarter ago; the stated book value per share was $20.40 versus $20.16 one quarter ago.

Regulatory capital ratios increased in the quarter. Tier 1 common capital ratio under Basel 1 rose to 11.41% and its Tier 1 common capital ratio under Basel 3 on…

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Even tiny tweets can be big data


Datasift, the UK company that has access to the Twitter firehose analyzes a petabyte of tweets and ships terabytes of insights around the world. And the infrastructure needs to keep up. The company has replaced its older networking gear with Arista switches to support its analytics operation, Datasift CEO and founder Nick Halstead said in a conversation with Derrick Harris at our Structure:Europe 2012.

Check out the rest of our Structure Europe 2012 live coverage here, and a video recording of the session follows below.

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Top Analyst Upgrades and Downgrades (ADT, ADTN, APOL, C, CSCO, DISCA, EQR, INTC, IBM, IP, MAA, MUR, NWSA, PSX, RYL, SON, S, TWX, TOL, DIS)

24/7 Wall St.

These are some of the top analyst upgrades, downgrades and initiations we have seen from Wall St. research calls this Wednesday.

ADT Corp. (NYSE: ADT) started as Outperform with $45 target at Credit Suisse.

ADTRAN Inc. (NASDAQ: ADTN) raised to Neutral at Goldman Sachs.

Apollo Group Inc. (NASDAQ: APOL) cut to Neutral at BofA/ML.

Citigroup Inc. (NYSE: C) raised to Outperform at CLSA and reiterated as Sell at Argus.

Cisco Systems Inc. (NASDAQ: CSCO) cut to Hold at Cantor Fitzgerald.

Discovery Communications Inc. (NASDAQ: DISCA) started as Underperform at Credit Suisse.

Equity Residential (NYSE: EQR) raised to Outperform at Raymond James.

Intel Corp. (NASDAQ: INTC) maintained Outperform with $32 target at Credit Suisse.

International Business Machines Corp. (NYSE: IBM) cut to Neutral at Janney Capital and reiterated Neutral at Credit Suisse.

International Paper…

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Lance Armstrong stepping down from Livestrong charity

This Just In

Editor’s note: Controversial American cyclist Lance Armstrong is stepping down as chairman from his Livestrong cancer charity. The announcement comes a week after the U.S. Anti-Doping Agency said it had uncovered overwhelming evidence of Armstrong’s involvement in a sophisticated doping program. For more information read our full story here.

[Updated at 3:01 p.m. ET] Lance Armstrong is about to lose another sponsorship.

The controversial cyclist will lose his contract with Anheuser-Busch, the brewer of Budweiser, at the end of the year.

 “We have decided not to renew our relationship with Lance Armstrong when our current contract expires at the end of 2012,” Paul Chibe, Vice President of U.S. Marketing, Anheuser-Busch said in astatement. “We will continue to support the Livestrong Foundation and its cycling and running events.”

[Updated at 12:18 p.m. ET] Nike will take Lance Armstrong’s name off their Nike campus fitness center in Beaverton, Oregon, spokeswoman Mary Remuzz…

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