Hot Stocks: Pfizer

January 23, 2002 Posted: 2143 GMT

NEW YORK (CNN/Money) -- Shares of drug maker Pfizer rose sharply higher on Wednesday after meeting Wall Street's expectations for the fourth quarter.

But shares of Tyco International fell as much as 8 percent as investors skittish about accounting issues backed away from their initial enthusiasm on the conglomerate's plans to split into four companies.

EarthLink stock also dropped after the Internet service provider's fourth-quarter results fell short of Wall Street estimates.

Pfizer (PFE: up $1.00 to $41.80, Research, Estimates). The drugmaker posted double-digit sales and earnings growth for the fourth quarter, fueled by continued strength of several blockbuster medicines.

Exxon Mobil (XOM: up $0.88 to $38.90, Research, Estimates). The oil titan reported a 49-percent drop in quarterly profit, but excluding special items and expenses relating to its 1999 acquisition of Mobil, its earnings were at the high side of analysts' estimates. Exxon Mobil is one of the 30 Dow components.

KLA-Tencor (KLAC: up $3.64 to $51.50, Research, Estimates). J.P. Morgan raised its investment rating on the chipmaking equipment manufacturer and some of its competitors to "long-term buy" from "market perform," citing prospects of an industry turnaround.

Other companies receiving an upgrade included Applied Materials (AMAT: up $1.75 to $41.24, Research, Estimates), Teradyne (TER: up $2.13 to $28.30, Research, Estimates), Varian Semiconductor Equipment (VSEA: up $2.38 to $35.48, Research, Estimates), and Novellus Systems (NVLS: up $3.42 to $39.65, Research, Estimates), the semiconductor equipment maker that posted a sharply lower fourth-quarter net profit which edged past Wall Street estimates by a penny a share.

InVision (INVN: up $3.00 to $36.17, Research, Estimates). The San Francisco Chronicle's Web site reported that San Francisco International Airport commissioners agreed to pay $19.3 million for 11 new scanners and plan to order them from InVision. Though the airport already has 13 such scanners, it will need 60 more by Dec. 31 to meet the new federal deadline.

Emulex (EMLX: up $5.53 to $44.13, Research, Estimates). The storage equipment maker raised its outlook for the rest of the fiscal year, citing competitive gains and signs of an improving economy. Emulex on Tuesday reported second-quarter earnings of $10.8 million, or 13 cents a share, down from $18.2 million, or 23 cents a share, for the same quarter a year earlier. Analysts expected a profit of 9 cents a share, according to First Call. In August 2000, details from a fake Emulex press release sent the stock tumbling more than 50 percent before it recovered most of the loss by day's end.

Mercury Interactive (MERQ: up $6.57 to $35.86, Research, Estimates). The provider of e-business software on Tuesday posted sharply lower fourth-quarter profit that beat Wall Street's estimate and said it sees revenue growth of up to 15 percent in 2002. The company reported earnings of $12.1 million, or 14 cents per share, down from $25.8 million, or 28 cents per share, a year earlier. Analysts had forecast 12 cents a share, according to First Call. Robertson Stephens upgraded the stock to "buy" from "market perform."

Silicon Graphics (SGI: up $0.23 to $2.85, Research, Estimates). The computer graphics systems developer earned a profit in its latest quarter, defying forecasts for a loss. The company reported a profit of $37 million, or 19 cents per diluted share, in the December-ending quarter, compared with a loss of $71 million, or 38 cents per share, in the year-earlier period.

Tyco International (TYC: down $2.45 to $45.10, Research, Estimates). Shares of the diversified company fell as investors cast doubt on the company's attempt to ramp up the share price of its stock by splitting the company into four separate publicly traded enterprises.

EarthLink (ELNK: down $0.61 to $9.53, Research, Estimates). The Internet service provider said Tuesday its fourth-quarter loss narrowed because of growth in high-speed Internet subscribers, but results fell short of Wall Street forecasts. Separately, the company announced Wednesday that it had secured a position on IBM's new Windows XP personal computers sold in North America. As part of the agreement, IBM customers that sign up for EarthLink's Internet access receive 30 days of free service.

Entrust (ENTU: down $3.16 to $6.95, Research, Estimates). Shares of the Internet security company were down over 30 percent as investors reacted to a drop in fourth-quarter revenue and conservative guidance.

Vitesse Semiconductor (VTSS: down $0.74 to $11.62, Research, Estimates). The communications chipmaker on Tuesday reported a quarterly loss as sales tumbled to less than one-quarter of the year-ago level amid a slump in the semiconductor industry and gave a cautious 2002 outlook.

Ariba (ARBA: down $0.61 to $5.32, Research, Estimates). Shares of the business-to-business software pioneer tumbled Wednesday, a day after the company and competitor Commerce One (CMRC: down $0.32 to $2.28, Research, Estimates), whose stock also fell, reported earnings and revenue that were sharply down from a year earlier.

Concord Camera (LENS: down $0.92 to $6.49, Research, Estimates). The maker of low-cost cameras said it would delay the release of its quarterly financial results as it evaluates any possible impact from a bankruptcy petition filed by one of its customers. Concord did not name that customer or set a new date for the earnings release, which was slated for Wednesday.

AsiaInfo Holdings (ASIA: down $2.28 to $16.37, Research, Estimates). The maker of telecom software said it had agreed to pay $47.3 million to buy Bonson Information Technology Ltd., a provider of telecom operation support systems used to run communications networks in China.

Health Management Associates (HMA: down $0.64 to $18.70, Research, Estimates). The hospital operator said it plans to privately sell $275 million of 20-year zero-coupon senior subordinated bonds convertible into company stock. The company said it will use proceeds primarily to pay down bank debt under its credit agreements.

Openwave (OPWV: down $0.86 to $7.05, Research, Estimates).  J.P. Morgan Chase and Pacific Crest downgraded the software maker, which posted weaker results in its fiscal second quarter. Excluding items, Openwave posted a loss of $12.9 million, or 7 cents a diluted share, compared with a profit of $15.8 million, or 9 cents per share, a year earlier.