Stocks to Watch: TiVo Climbs on Guidance, Cross Country Plunges

The Day's Winners

Flower delivery service 1-800-Flowers.com (FLWS Quote) tacked on 12% to $6.05 after the company reported a rise in fourth-quarter earnings. The company said it earned $5.5 million, or 8 cents a share, in the quarter, up from break-even results a year ago and ahead of the consensus estimate of 6 cents a share. Revenue climbed 6% to $140.3 million. The company forecast 2003 earnings of more than 20 cents a share.

DOV Pharmaceutical (DOVP Quote) added 18% to $3.94 on news of positive phase II test results for its postsurgical dental pain treatment.

ICN Pharmaceuticals (ICN Quote) added 15% to $10.60 after beating Wall Street's second-quarter estimates and saying it was "not uncomfortable" with full-year projections. The drug company earned $16.3 million, or 19 cents a share, down from $23.3 million, or 28 cents a share, a year ago, but above estimates calling for 17 cents. Sales rose 16% to $237 million but were partially offset by higher costs. In its conference call, ICN said it was comfortable with full-year estimates of 93 cents a share, but warned that the outlook could change depending on the outcome of the company's ongoing strategic review of operations.

Shares of TiVo (TIVO Quote) were climbing 31% to $3.39 after the company doubled its revenue forecast for the second quarter. TiVo now expects revenue of $23 million to $24 million, up from its previous guidance of $10.5 million to $12 million, saying a previously announced licensing agreement will bring in about $12 million in additional revenue. The company didn't update its earnings guidance.

Internet service provider United Online (UNTD Quote) added 8% to $10.20 after posting a narrower fourth-quarter loss and raising its guidance. The company posted a loss of $2.7 million, or 7 cents a share, compared with a loss of $4.3 million, or 19 cents a share, in the third quarter. On a pro forma basis, United earned 9 cents a share, ahead of estimates calling for 4 cents. Revenue was up to $54.4 million from $50.9 million last quarter. First Albany upgraded the stock to buy from neutral and moved its price target to $13.

The Day's Losers

Aon Corp. (AON Quote) was falling 23% to $16.35 on accounting concerns and sharply lower-than-expected second-quarter results. Aon revealed that talks with the Securities and Exchange Commission led to the conclusion that certain noncash losses should have been recorded in earlier periods. The company said that the SEC could force restatements to its 1999 and 2000 results. For the second quarter, Aon earned 33 cents a share, down from 56 cents a year ago and well below estimates of 50 cents. The company blamed the disappointing results on higher costs, unusual items, compressed margins and lower investment income.

Electronic financial services provider CheckFree (CKFR Quote) lost 15% to $7.95 on a gloomy research note from Midwest Research. The firm said CheckFree's new customer adoption rate is low, and a consensus has yet to be reached regarding free bill pay services.

Shares of Cross Country (CCRN Quote) plunged 39% to $15.98 despite posting higher second-quarter earnings that were in line with estimates. The health care staffing agency earned $8 million, or 24 cents a share, up from $2.7 million, or 11 cents a share, in the year ago quarter. Analysts polled by First Call were expecting 24 cents. Cross Country also reiterated its full-year earnings guidance of $1.02 to $1.06 a share. The stock sold off anyway, with Merrill Lynch claiming the weakness was caused by a "shifting mix between price and volume." Merrill said the selloff was overdone, and it expects the stock to rebound to the low $30s in the next 12 months.

Independent Internet bank NetBank (NTBK Quote) fell 10% to $8.32 after the company missed second-quarter estimates. NetBank reported earnings of 12 cents a share, up from 3 cents a year ago but below the estimate of 14 cents.