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Hot Stocks: Mixed results
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October 24, 2001: 4:21 p.m. ET
Citrix stock jumps on strong sales, but AT&T, Viacom slide on lukewarm earnings.
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NEW YORK (CNNmoney) - Shares of Citrix jumped sharply on Wednesday after saying its quarterly net income rose 28 percent on strong sales of its MetaFrame XP line. The software maker also said sales should keep growing by at least 20 percent through 2002.
But warnings from AT&T dragged the company's shares lower. The No. 1 U.S. long-distance concern reported a sharp drop in profit and warned on its core telephone business amid a weak economy and stiff competition.
Shares of Viacom also felt earnings pressure after the media behemoth reported a sharp drop in its television and radio advertising revenue following the Sept. 11 attacks.
Tuesday's winner
Citrix Systems (CTXS: up $3.35 to $24.72, Research, Estimates). The U.S. specialty software maker said Tuesday its third-quarter net income rose 28 percent to $27.8 million on strong sales of its MetaFrame XP line.
Entrust (ENTU: up $1.03 to $4.86, Research, Estimates). Goldman Sachs raised its rating on the security software maker after it reported a narrower-than-expected third-quarter loss Tuesday.
Websense (WBSN: up $2.64 to $20.15, Research, Estimates). The developer of software to control employee Internet use reported third-quarter earnings that topped estimates and built on earnings from the same period one year earlier. The company also raised its outlook for the fourth quarter and 2001.
Pactiv (PTV: up $0.54 to $15.54, Research, Estimates). The maker of Hefty brand storage bags and other specialty packaging reported third-quarter net income of 28 cents a share, edging estimates by a penny and topping earnings from one year earlier by 4 cents.
Caremark Rx (CMX: up $1.45 to $14.25, Research, Estimates). Goldman Sachs added the prescription benefits manager to its "recommended list" from a "market outperform" rating and raised estimates for 2001 and 2002 after the company said third-quarter profit nearly doubled from a year earlier on strong sales.
PRI Automation (PRIA: up $3.38 to $15.92, Research, Estimates). The software maker rose on news that it will be bought out by semiconductor production equipment maker Brooks Automation (BRKS: down $1.31 to $31.80, Research, Estimates) in a stock deal worth approximately $380 million.
UTStarcom (UTSI: up $2.06 to $22.51, Research, Estimates). USB Piper Jaffrey and Banc of America Securities both reiterated their "strong buy" ratings on the telecom equipment provider after it said Tuesday that it earned 20 cents a share in the third quarter, 2 cents better than estimates and 6 cents better than the 14 cents per share earned one year earlier.
SureBeam (SURE: up $4.71 to $15.41, Research, Estimates); Titan (TTN: up $4.00 to $26.30, Research, Estimates). The food irradiation stock and its parent Titan rose on reports that the U.S. Postal Service is exploring different technologies to help sanitize the mail, including irradiation.
Nextel Communications (NXTL: up $1.29 to $8.69, Research, Estimates). The nation's fifth-largest wireless telephone company reported a 30 percent increase in revenue as its subscriber growth met expectations.
Vysis (VYSI: up $7.26 to $30.26, Research, Estimates). Drugmaker Abbott Laboratories (ABT: Research, Estimates) said it agreed to acquire the laboratory products maker in a stock deal worth about $355 million that is aimed at strengthening Abbott's position in the market for diagnosing diseases.
Tuesday's losers
AT&T (T: down $1.36 to $16.34, Research, Estimates). The No. 1 long-distance phone provider late Tuesday posted third-quarter results that met Wall Street expectations while citing a softening economy and September's terrorist attacks for a falling profit.
Viacom (VIA.B: down $0.89 to $36.13, Research, Estimates). The media powerhouse posted a third-quarter loss, reflecting lost ad revenue, higher costs after the Sept. 11 attacks and the cost of Blockbuster's switch to DVD format.
Eastman Kodak (EK: down $3.46 to $30.71, Research, Estimates). The film manufacturer reported a sharply lower third-quarter profit that met Wall Street forecasts and said it would cut another 3,500-to-4,000 jobs.
Enron (ENE: down $3.38 to $16.41, Research, Estimates). The energy trader fell after Prudential cut the stock's rating to "sell" from "hold," following an Enron conference call. The firm said management is doing little to restore confidence after the Securities and Exchange Commission issued Enron a letter of inquiry earlier this week over transactions involving the company's chief financial officer.
El Paso Energy (EPG: down $2.84 to $47.83, Research, Estimates). The natural gas and pipeline company reported third-quarter net income of 78 cents per share, topping First Call estimates by 4 cents and building on the 55 cents earned one year earlier.
Oni Systems (ONIS: down $1.01 to $5.62, Research, Estimates). A number of analysts cut estimates on the optical communications gear maker after it said it lost 19 cents in the third quarter, in line with forecasts, but expects a fourth-quarter loss that is greater than current estimates. The company also cut 16 percent of its work force.
Cepheid (CPHD: down $0.80 to $5.32, Research, Estimates). The maker of technology to detect contaminants such as anthrax and smallpox in food and water reported a third-quarter loss of 15 cents a share, 3 cents narrower than analysts expected due to increased bio-terrorism fears.
California Pizza Kitchen (CPKI: down $1.24 to $18.66, Research, Estimates). The casual-dining pizza chain earned 18 cents in the third quarter, a penny worse than estimates, and also warned that fourth-quarter, 2001 and 2002 results will miss expectations.
CheckFree (CKFR: down $4.57 to $12.20, Research, Estimates). The Internet billing firm said Tuesday its first-quarter net loss widened as amortization charges outweighed rising revenue from higher numbers of subscribers.
Amazon.com (AMZN: down $1.91 to $7.64, Research, Estimates). The world's biggest Internet retailer reported a narrower third-quarter loss, in line with Wall Street's expectations, and reaffirmed expectations for a fourth-quarter profit despite lower sales after the Sept. 11 terrorist attacks.
InfoSpace (INSP: down $0.44 to $1.71, Research, Estimates). The Internet and wireless services provider on Tuesday posted a quarterly loss in line with Wall Street expectations, compared with a profit a year earlier, and said it would cut about 200 jobs.
Avaya (AV: down $1.30 to $10.60, Research, Estimates). The communications equipment maker reported a net loss and lower operating profit in its fourth quarter, and said it aims to top Wall Street's 2002 estimates. 
--from staff and wire reports
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