Updated from 11:20 a.m. EST

Earnings Reports & Outlooks

4Kids Entertainment

(KDE)

posted fourth-quarter earnings of 16 cents a share, down from 65 cents in the year-ago period. Revenue dropped to $10.3 million from $19.2 million. The lower results reflect the slowdown in the Pokemon craze. 4Kids holds the licensing rights to many Pokemon-related products. The stock was down 12.3% to $17.49.

Digital River

(DRIV) - Get Report

lowered its first-quarter guidance, saying it now expects revenue of $18 million, which is below the company's previous forecast of $19.4 million. The company expects earnings, before items, of a penny to 2 cents a share. On that basis, Digital previously expected earnings of 7 cents. According to First Call, analysts were looking for revenue of $19.5 million and earnings, before items, of 7 cents. The stock was down 46% to $8.

M&F Worldwide

(MFW)

on Thursday reported fourth-quarter earnings of 6 cents a share, including a gain, and revenue of $67.4 million. The stock was up 8.7% to $2.88. M&F Worldwide consists of two main business units, Mafco Worldwide, a producer of licorice extract, and Panavision, a designer of camera systems for the movie and television industries.

RSA Security

(RSAS)

expects first-quarter revenue of $55 million to $56 million, compared with $73.6 million in the same period a year ago. The security software company expects to lose 24 cents to 28 cents a share when its results are calculated according to generally accepted accounting principles. Excluding items, RSA expects a loss of 8 cents to 11 cents a share. Analysts expect earnings of 2 cents and revenue of $64.6 million. The stock was dropping 16.4% to $7.52.

Analyst Actions

Department store chain

Dillard's

(DDS) - Get Report

was down 4.3% to $22.83 after Merrill Lynch cut its near-term rating on the stock to reduce/sell from neutral. Merrill cut a host of retailers, sending many stocks in the sector lower.

Federated

(FD)

,

Gymboree

(GYMB)

,

Jones Apparel

(JNY)

and

May Department Stores

(MAY)

, among others, were also downgraded.

UBS Warburg downgraded

Wal-Mart

(WMT) - Get Report

to a buy rating from a strong buy, but left its 12-month price target of $70 unchanged. The firm said it doesn't see any near-term catalysts to drive the stock higher. Wal-Mart was down 3.8% to $58.95.

Miscellaneous News

QLT

(QLTI)

said the Centers for Medicare and Medicaid Services has decided not to uphold its original intention to expand the national coverage policy for Visudyne therapy to include patients with occult subfoveal choroidal neovascularization secondary to age-related macular degeneration, a leading cause of blindness in people over 50. The company now expects sales for Visudyne of $275 million to $300 million in 2002, which would be 25% to 35% above last year's results. The stock was down 10.2% to $15.32.

Sierra Pacific Resources

(SRP)

was plunging 32.7% to $10.15 after the Nevada Public Utilities Commission denied $437 million of Nevada Power's $922 million rate adjustment proposal, representing deferred power costs from the power price increases in 2000. Nevada Power is a unit of Sierra Pacific. Standard & Poor's downgraded Sierra Pacific's debt rating, while Goldman Sachs and Merrill Lynch cut their ratings on the company's stock.