The shares of Domino's Pizza (NYSE: DPZ) gapped sharply lower this morning, despite a stronger-than-expected third-quarter profit. Ahead of the bell, Domino's reported net income of $17.8 million, or 31 cents per share, for the quarter ended Sept. 6. Excluding a $14.3 million pretax gain, Domino's profit of 17 cents per share was two cents better than analysts expected.

However, revenue for the period tumbled 6.5% to $302.7 million, falling well short of consensus estimates for $308.9 million. Same-restaurant sales were flat in the U.S., although they were up 2.7% internationally. With top-line results softer than expected, the pizza chain cited lower interest expense and tighter cost controls for the robust bottom-line results.

Delta Air Lines (NYSE: DAL) was on the upswing Monday after the firm raised its forecast for third-quarter margins. The airline issue now expects operating margin of 3% to 4% for the current quarter, compared to its midsummer outlook of 1% to 3%. Third-quarter fuel prices are now expected to average $2.14 per gallon, down from a prior prediction of $2.17.

The update comes courtesy of a regulatory filing, wherein Delta noted that many of its financial metrics are improving on both a sequential and a year-over-year basis. Load factor for September and October is pegged at 82%, narrowly above last year's level. Meanwhile, revenue per available seat mile is expected to decline in the third quarter, but less so than in the second quarter.

Late Wednesday, Smith & Wesson Holding Corp. (NASDAQ: SWHC) stepped into the earnings spotlight to release its fiscal first-quarter results. The firearm firm raked in a profit of $12.6 million, or 21 cents per share, sharply higher from its year-ago earnings of $2.3 million, or 5 cents per share. Revenue for the period jumped 30% to $102.2 million, buoyed by a 30% increase in firearm sales and a 39% gain in non-firearm sales.

The results soared past analysts' expectations, which called for a fiscal first-quarter profit of 10 cents per share on $94.1 million in revenue. SWHC's bottom line received a boost of 5 cents per share during the recently concluded quarter from its acquisition of Universal Safety Response Inc.

Burger King Holdings (NYSE: BKC) is on the upswing today after the fast-food chain topped analysts' earnings expectations. In its fiscal fourth quarter, the burger baron banked a profit of $58.9 million, or 43 cents per share, representing a 16% increase from the year-ago period. Revenue dipped 2% to $629.9 million, while same-store sales fell by 2.4%. By contrast, analysts were looking for a profit of just 33 cents per share on $632 million in revenue.

Looking ahead, the restaurant chain warned that it expects sales to be soft through Christmas. As a result, Burger King declined to issue specific earnings guidance for the current fiscal year. Additionally, the company plans to slow the pace of its new store openings; rather than the 360 new outlets opened in fiscal 2009, Burger King is targeting 250 to 300 openings in fiscal 2010.

Baidu Inc. (NASDAQ: BIDU) CEO Robin Li has high hopes for Phoenix Nest, his company's new advertising system. While many investors worried that Phoenix Nest, launched in April, would negatively impact revenue, Li thinks that the system will actually boost sales over the longer term.

In an interview with Dow Jones, Li confessed that revenue has suffered modestly since the launch of Phoenix Nest, primarily due to the fact that Baidu has been offering advertisers incentives to switch to the new system. However, he added, "Going forward, Phoenix Nest will have meaningful positive impact to our revenue."

We've seen a large percentage of companies reporting better-than-expected earnings. However, the earnings reports were not always compared to last year.

There is yet another factor, actually the most important factor that generates profits, and that key factor is sales. Without sales, the bottom line (net profit) remains stagnant.

Companies have slashed payrolls and expenses and that increased the bottom line for a time. However after all of this is over, the bottom line doesn't improve until sales improve.

Shares of TASER International (NASDAQ: TASR) are trading lower today as investors react to the company's second-quarter earnings report. The stun-gun issue reported a narrowed quarterly loss of $723,403, or a penny per share, compared to its year-ago loss of 3 cents per share.

Revenue for the period increased 3.5% to $21.8 million, though gross margin fell to 62.9% from 64.5%. Research and development expenses jumped 45% during the quarter as TASER poured more cash into new products, including its recently launched X3 device.

Those who follow the U.S. economy and the financial markets are accustomed to hearing investors and holders of U.S. assets complain about the weak dollar.

'The federal budget deficit is going to lead to a weak dollar and rampant inflation.' 'The Fed is going to inflate the economy to help the U.S. pay its debt, undermining the value of my portfolio.' 'The weak dollar is causing inflation, forcing up the price of oil and other commodities.'

Chinese solar concern ReneSola Ltd. (NYSE: SOL) is trading sharply higher today after the company reported that fourth-quarter revenue will exceed analysts' expectations. SOL expects to rake in revenue of $157 million to $159 million, compared to the Street's consensus estimate of $154 million.

However, the rest of ReneSola's forecast wasn't quite as sunny. The alternative energy firm warned that it will swing to a fourth-quarter net loss of $125 million to $130 million, prompted by "significant downward pressure" on average selling prices and margins. ReneSola predicted quarterly writedowns of $130 million to $140 million, due to the rapid deterioration in the price and value of materials.

Monday evening, TiVo Inc. (NASDAQ: TIVO), synonymous with digital video recording technology, announced a fourth-quarter loss of $3.6 million, or four cents per share. This was two pennies better than the previous year's results and six cents above analysts' expected per-share loss of 10 cents.

Revenue, however, moved south, to $59.2 million from $74.1 million last year, with service revenue sliding 13.5% lower while technology revenue dropped 37%. TiVo was expecting revenue of $47 million to $49 million, surrounding economists' expectations of $48.7 million.

The U.S. economy falls into a recession, a global financial crisis ensues, triggering first a slowdown in global growth, then an outright global recession.

And almost on cue, companies begin to scrap guidance -- or their quarterly and full-year outlook for revenue, earnings and other metrics -- and the debate on the merits of guidance begins.

Is guidance superfluous, an unneeded metric on an already overloaded financial landscape? Or is the elimination of guidance another step into opaqueness and a lack of transparency -- just an extension of the clouded climate that's in part responsible for the financial crisis in the first place?

How much has investor sentiment and the global economic outlook shifted in the past six months?

Consider this: stocks have fallen so much during this year-old recession that 2,267 companies around the globe in the MSCI World Index have cash positions above the value of their stock and debt.

Further, that's a level of 'offering investors profits for free' that's eight times higher than the last bear market. Global companies in this category include Bank of New York Mellon (NYSE: BK), Italy's Danieli SpA, and South Korea's Namyang Dairy Products.

The U.S. and global economic slowdowns stemming from both a cyclical trough in the U.S. and the global financial crisis have wiped out more than $34 trillion in stock market value, globally. However, the mark-downs do not, in and of themselves, represent a 'buy' signal for investors, so says economist David H. Wang.

"The values are indicative of a significantly deepening recession and pervasive fear. There's fear of counterparties, fear of a lack of return on investment, fear that a home mortgage of business loan won't be repaid," Wang said. "This fear is perhaps the biggest drag on commercial activity today and until it recedes, corporate revenue and earnings will be constrained, which will make it a difficult environment for stocks."

A journalism professor of yours truly, Jon Sandberg, who also served in key positions for several Connecticut governors, had an interesting technique that he frequently deployed in seminars. A student would pose a question and Sandberg would say, "That's a good question. Is it acceptable and ethical to publish information that you know would show ethical and other lapses by the current president, if you know that information would also harm innocent individuals? That's a good question."

Then Sandberg would grab his cup of coffee and walk to the window side of the classroom, and stare out the window, sipping his coffee, saying nothing, for an eternity. Eventually, a student or two would begin the discussion.

What's a good question for today? Maybe this: where have all the consumers gone in the U.S. economy? BloggingStocks had a chance to grill economist Peter Dawson on the matter, and he has a few theories.

The first concerns structural and technological factors, he said. The U.S. is in the midst of adjusting to globalization, which, as most investors know, has resulted in the transfer of millions of good-paying U.S. jobs overseas to lower-cost centers. "The U.S. has also gained some jobs from globalization, but the net is still a major loss of good-paying jobs in the United States," Dawson said. "Some economists argue that's at the root of declining consumption. We are net-negative in the good-paying jobs category, so far, in globalization, and there simply aren't enough citizens with incomes adequate to buy the products."

Most investors / readers know about inflation -- an increase in the price of a good or service not connected to an improvement.

But fewer know about its flipside -- deflation -- a decline in prices.

Moreover, while inflation is a serious problem -- it erodes purchasing power and makes it hard for businesses to project and plan for costs, moving forward- - deflation is an even bigger menace.

That's because deflation decreases the amount of money flowing to businesses for their products/services, reducing the money needed to keep commercial activity alive and the economy growing.

Deflation: a danger sign

Don't misunderstand: a price cut after a company becomes more-efficient, or implements a 'holiday or promotional' sale, is fine. Deflation is different: it's pervasive price cutting and asset price declines -- falling prices across the product/service spectrum -- usually driven by a lack of consumer / wholesale demand.

Further, if deflation persists it can, you guessed it, lead to lay-offs. Companies and factories with lower revenue and demand for their products / services scale-back production to reduce expenses by laying-off employees. Those laid-off employees then cut expenses as they search for new work assignments by cutting spending, resulting in even lower demand for products, further price cuts, and lower company revenues, and a vicious cycle can ensue.

I'm still enjoying the sweet taste left in my mouth from this morning's Coca-Cola Classic (I treat myself to three of four of the syrupy concoctions each week). I'm also still enjoying -- at least once a day -- Coca-Cola's (NYSE: KO) "It's Mine" Super Bowl ad, my favorite among the bunch. The dueling parade balloons concept (available to watch here) was clever and well-executed, nicely scored (with a 60-second excerpt from the Rossini Overture), and complete with a big payoff at the end. Also note the thoughtful inclusion of a young brunette girl, football in hand, around the 50-second spot. (Anyone else reminded of Lucy Van Pelt?)

Most importantly, the ad had solid brand placement, frequently reminding viewers what was being advertised. This was not the case with Coke's chief competitor, PepsiCo (NYSE: PEP), which employed dancing lizards and supermodel Naomi Campbell to publicize its SoBe Life Water. Problem was, "Life Water" was barely mentioned.

But the fun of Super Bowl Sunday is behind us, and the business of earnings is ahead. Coca-Cola is set to announce its fourth-quarter results tomorrow. The mean estimate among analysts is calling for per-share results of 55 cents, a 5.8% improvement from year-ago results of 52 cents per share. The high estimate at this point is 57 cents, with a low of 50 cents; the revenue estimate weighs in at 5.77%.