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Hot Stocks: Rambus hit
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March 15, 2001: 4:16 p.m. ET
Patent suit snag hurts chipmaker; good news boosts Mirant, Nokia
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NEW YORK (CNNfn) - Semiconductor firm Rambus took a beating Thursday after an analyst advised clients about an unfavorable development in a patent suit the chipmaker filed against German semiconductor Infineon.
But shares of Mirant rose sharply after the energy company said it expects its first-quarter earnings to blow past expectations.
Nokia, the world's biggest mobile-phone handset maker, gained after it cut its quarterly revenue growth forecast but left its earnings-per-share forecast intact.
Thursday's losers
Rambus (RMBS: Research, Estimates) down $11.26 to $24.09. SG Cowen analyst Mark Grossman told clients of a unfavorable development in a patent suit Rambus filed against German semiconductor company Infineon Technologies (IFX: Research, Estimates). In the ruling, the judge sided with an expert witness for Infineon who said that the chips in question are not made using Rambus' patented designs, which Grossman said is bad news for Rambus.
Intuit (INTU: Research, Estimates) down $12.63 to $29.63. The leading provider of financial software and Web-based services said it expected its third-quarter revenue growth to be slower than expected.
Globespan (GSPN: Research, Estimates) down $4.25 to $20.38. The chipmaker issued a warning about its first- and second-quarter revenue and earnings. Prudential Securities cut its price target to $32 from $49 and UBS Warburg cut its earnings estimates for 2001 and 2002.
Dollar Tree Stores (DLTR: Research, Estimates) down $6 to $18.19. The discount retailer said late Wednesday it revised its first-quarter earnings estimate, citing a high number of store closings and low customer traffic in its stores because of the slowing economy.
CoSine Communications (COSN: Research, Estimates) down $1.25 to $4.25. The network management company late Wednesday warned its operating revenue for the first quarter will be less than expected due to the slowdown in telecommunication carrier spending.
TeleTech Holdings (TTEC: Research, Estimates) down $5.06 to $9.06. The company, which provides customer relations services for companies, late Wednesday forecast disappointing first-quarter results due to the sluggish economy and said two of its executives resigned.
Virata (VRTA: Research, Estimates) down $1.75 cents to $10. The telecommunications equipment maker late Wednesday warned that its fiscal fourth-quarter results will fall short of estimates due to U.S. economic weakness and a continued inventory overhang.
Avistar (AVSR: Research, Estimates) down $1.19 to $1. The company warned its first-quarter revenue will be 10 percent below its fourth-quarter revenue of $6.6 million. J.P. Morgan cut its rating on the enterprise video company to "long term buy" from "buy."
Thursday's winners
Mirant (MIR: Research, Estimates) up $4.77 to $29.83. The energy company said it expects to double forecasts for its first-quarter profit due to strong natural gas and electricity markets. Mirant expects its first-quarter earnings to reach 46 cents to 48 cents a share, beating the expected 22 cents. Lehman Brothers upgraded the company to "strong buy" from "buy."
Nokia (NOK: Research, Estimates) up $3.15 to $24.95. The world's biggest mobile-phone handset maker chopped its first-quarter revenue growth forecast and lowered its estimate of worldwide handset demand, but it also reiterated its earnings-per-share forecast.
American Eagle Outfitters (AEOS: Research, Estimates) up $2.44 to $28.50. The clothing retailer reported net income of 68 cents a share for the fourth quarter ended Feb. 3. It was expected to earn 65 cents, according to the average estimate of analysts polled by First Call.
Verity (VRTY: Research, Estimates) up $1.75 to $24.69. The Web portal software maker said late Wednesday its pro forma third-quarter earnings rose nearly 18 percent, beating analysts' expectations, and that its profit for the current quarter should be in line with Wall Street forecasts.
WorldCom (WCOM: Research, Estimates) up $1.13 to $17.56. The long-distance telephone and data services company continued to rise after saying Wednesday it would not revise its growth outlook and has not held merger talks with local telephone company SBC Communications (SBC: Research, Estimates).
-- compiled by Catherine Tymkiw from staff and wire reports 
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