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Stocks to Watch: Walgreen Tops Estimates, EMC Gets Upgrade


Updated from 10:41 a.m. EST

For the December quarter, Credit Suisse First Boston expects

Redback Networks


to exceed estimates, and the firm said

Foundry Networks


could slightly miss expectations. CSFB expects

Extreme Networks

(EXTR) - Get Extreme Networks, Inc. Report


Enterasys Networks


to post in-line results.


TheStreet Recommends

(CSCO) - Get Cisco Systems, Inc. Report




are the firm's two favorite stocks at this juncture, with


(JNPR) - Get Juniper Networks, Inc. Report

potentially attractive at lower prices.

Earnings Reports & Outlooks

1-800 Flowers

(FLWS) - Get 1-800-FLOWERS.COM, Inc. Class A Report

forecast earnings of 2 cents to 3 cents a share for the fiscal second quarter. Analysts are expecting income of 3 cents, according to First Call. The company expects to report that online revenue rose 27% to $60.5 million, while telephone sales were up 18% to $93.5 million.

Christopher & Banks


posted a 6% increase in December same-store sales. Total sales for the four-week period ended Dec. 29 increased 34% to $39.8 million. The company expects January comparable sales to come in flat or increase as much as 2%.

Pier 1 Imports

(PIR) - Get n.a. Report

said December same-store sales rose 14% from the same month last year. The company is now expecting fourth-quarter earnings of 44 cents to 46 cents a share. Wall Street is looking for 42 cents.



raised its third-quarter revenue guidance to a range of $24.5 million to $26 million. The company is looking for a loss, excluding items, of 79 cents to 88 cents a share. Analysts are expecting a loss of $1.05.

Tuesday Morning

(TUES) - Get Tuesday Morning Corp. Report

, citing a disappointing sales performance, cut its fourth-quarter earnings estimate to 63 cents a share. Analysts are expecting income of 67 cents. Total sales rose 15% for the quarter, but the top line came in below the company's prior expectations.



reported first-quarter earnings of 18 cents a diluted share, a penny better than analysts expected. Sales rose 16.8% to $6.6 billion. Separately, the company said same-store sales rose 8% for December.

Analyst Actions

Dow Chemical

(DOW) - Get Dow, Inc. Report

was upgraded by Merrill Lynch to near-term strong buy from buy Thursday morning, but the firm didn't have timing on its side. Shortly after the upgrade, Dow warned that it doesn't expect to meet its previously stated earnings target of 10 cents to 20 cents a share for the fourth quarter. The revised outlook stems from softer volume in several Dow businesses, as well as continued margin compression in basic chemicals and plastics.

Salomon Smith Barney upgraded



to buy from outperform, but the firm left its price target of $20 unchanged.

J.P. Morgan issued positive comments on


(INTC) - Get Intel Corporation Report

, advising investors to buy the chipmaker's stock before Jan. 14. The company is scheduled to post its quarterly results on that day, and the firm believes Intel could top Wall Street's fourth-quarter consensus estimate of 11 cents a share.

Mergers, Acquisitions & Joint Ventures


(MDT) - Get Medtronic Plc Report

acquired Paceart from GE Medical Systems Information Technologies. Paceart provides database systems for pacemakers, implantable defibrillators and arrhythmia management systems. Financial terms of the deal weren't disclosed.

Miscellaneous News

Providian Financial


will eliminate about 800 additional jobs by the end of the second week of January. When the new reductions are complete, Providian will have reduced its workforce by about 11% since disclosing restructuring plans in October. In November, Providian eliminated 550 positions in connection with the closure of its Henderson, Nev., operation. The company has about 12,500 workers.

Transkaryotic Therapies


said the company's enzyme replacement therapy for treating Hunter syndrome received orphan drug status in Europe and the U.S.