Hot Stocks: AOL Time Warner
Matria shares drops after disappointing results; Circuit City gets an upgrade.
February 20, 2002: 4:49 p.m. ET
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NEW YORK (CNN/Money) - Shares of Circuit City Stores rose 10 percent on Wednesday, after an analyst raised the rating on the second largest U.S. consumer electronics retailer to a "strong buy" from a "buy."
But shares of AOL Time Warner, the parent of CNN/Money, fell after Lehman Brothers analyst Holly Becker downgraded the stock and cut growth estimates for the Internet and media powerhouse's AOL unit.
Matria Healthcare stock also fell sharply for the second straight day after the disease management company reported results that were well below already reduced expectations.
Wednesday's winners
Circuit City (CC: up $2.21 to $24.32, Research, Estimates). Merrill Lynch upgraded the consumer electronics retailer to "strong buy" from "buy." Gains spread to rival RadioShack (RSH: up $0.42 to $27.01, Research, Estimates).
EuroWeb (EWEB: up $0.74 to $2.35, Research, Estimates). The Internet service provider received a $10.5 million buyout bid from Holland's KPN Telecom NV. KPN said it was offering $2.25 for each outstanding EuroWeb share, a 40 percent premium to their Tuesday closing price.
Nextel Communications (NXTL: up $0.83 to $4.38, Research, Estimates). Bargain-hunting boosted Nextel stock, as investors nabbed shares of the battered wireless operator.
Agilent Technologies (A: up $2.81 to $28.86, Research, Estimates). The technology equipment company said it lost 29 cents a share in its first quarter, much narrower than the 50-cent-per-share loss that analysts were looking for. Agilent said it's on track to return to profitability sometime during its third quarter.
OSCA (OSCA: up $5.66 to $27.65, Research, Estimates). The subsidiary of Great Lakes Chemical (GLK: up $0.46 to $22.31, Research, Estimates) is being bought by BJ Services (BJS: down $0.53 to $30.03, Research, Estimates) for about $200 million after taxes.
Abercrombie & Fitch (ANF: up $2.26 to $25.35, Research, Estimates). The youth-oriented retailer said quarterly earnings edged up 3 percent, beating Wall Street expectations, as it staved off repercussions from declining sales at its stores open at least a year through tight inventory and cost controls.
IDEC Pharmaceuticals (IDPH: up $6.09 to $62.10, Research, Estimates). The biotechnology company said Tuesday that the U.S. Food and Drug Administration approved its drug Zevalin for delivering cancer-killing radiation directly to tumors. Zevalin was approved to treat patients with low-grade non-Hodgkins lymphoma, a cancer of the immune system.
Cephalon (CEPH: up $2.27 to $60.88, Research, Estimates). The biotech firm posted a fourth-quarter profit on higher sales of its flagship anti-sleepiness medication Provigil. The company logged a profit of $9.45 million, or 17 cents a share, compared with a loss of $12.66 million, or 30 cents a share, a year earlier. Analysts had expected the company to earn 14 cents a share, according to First Call.
Riverstone Networks (RSTN: up $0.08 to $7.47, Research, Estimates). Wells Fargo Securities initiated coverage of the communications equipment maker with a "strong buy" rating and a 12-month price target of $16.50.
Extreme Networks (EXTR: up $0.80 to $9.55, Research, Estimates). Credit Suisse First Boston upgraded the provider of networking infrastructure equipment to "buy" from "hold."
Wednesday's losers
AOL Time Warner (AOL: down $1.32 to $24.20, Research, Estimates). Lehman Brothers downgraded the media company to "market perform" from "buy" based on the firm's new lower growth projections for the AOL online services division. AOL Time Warner is the parent company of CNN/Money.
Matria Healthcare (MATR: down $1.30 to $17.25, Research, Estimates). The Marietta, Ga.-based company, which provides programs to manage chronic diseases, said on Tuesday its quarterly earnings fell 67 percent, far lower than what Wall Street had expected, citing a higher-than expected annual income tax provision.
Pharmaceutical Resources (PRX: down $9.11 to $16.10, Research, Estimates). The drugmaker said another firm, Roxane Laboratories, had won U.S. approval to sell an oral suspension form of megestrol, a treatment for anorexia and weight loss for people with AIDS. Pharmaceutical Resources launched its own oral version of the drug last July and had a monopoly on it. Roxane Laboratories is the U.S. subsidiary of privately held German company Boehringer Ingelheim.
Computer Associates (CA: down $4.40 to $20.91, Research, Estimates). The Federal Bureau of Investigation and the U.S. attorney for the Eastern District of New York have launched a preliminary investigation into the software maker's accounting practices, Newsday reported Wednesday.
Stewart & Stevenson Services (SSSS: down $1.93 to $15.46, Research, Estimates). The maker of tactical vehicles for the U.S. Army and other products said it will report lower-than-expected fourth-quarter results because of low sales volume and growing costs.
TMP Worldwide (TMPW: down $3.66 to $28.25, Research, Estimates). The advertising and marketing company that runs the Monster.com job recruitment site warned about its first quarter, saying it expects to earn between 13 to 16 cents a share versus analysts' forecasts of 23 cents a share. TMP on Tuesday reported fourth-quarter earnings of 24 cents a share, in line with Wall Street estimates.
Allegiance Telecom (ALGX: down $1.05 to $2.65, Research, Estimates). The communications provider said its fourth-quarter net loss widened to $125.6 million, or $1.09 a share, from $86.2 million, or 79 cents a share, a year earlier.
Pegasus Communications (PGTV: down $0.83 to $4.45, Research, Estimates). Salomon Smith Barney downgraded the satellite services company to "neutral" from "buy."
Cinergy (CIN: down $0.75 to $31.50, Research, Estimates). The utility said it raised about $200 million from the sale of 6.5 million shares of common stock in an effort to strengthen its balance sheet. 
-- from staff and wire reports
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