STOCKS TO WATCH: AOL, Inktomi, Intel, RealNetworks and Teradyne

AOL will see heavy action Wednesday after it topped analysts' estimates in its third quarter Tuesday, earning $271 million, or 11 cents a share, on sales of $1.8 billion.

First Call consensus expected the world's largest Internet service provider to make 9 cents a share in the quarter.

Its shares closed up 1 3/4 to 60 1/2 ahead of the earnings report.

Including a one-time gain of $275 million from stock sales, AOL earned $438 million, or 17 cents per share.

Third-quarter revenue rose 47 percent year-over-year to $1.8 billion. Advertising, commerce and other revenue totaled $557 million, a 103 percent gain from a year ago and a 27 percent improvement over the fiscal second quarter. Subscription revenue increased to $1.15 billion, up 33 percent from the year-ago period.

Sales and marketing expense declined to 14.5 percent, compared to 17.4 percent in the same period a year earlier. Operating income rose 155 percent year-over-year to $383 million, or 20.9 percent of revenue.

Inktomi figures to move higher after it surprised Wall Street by posting the first profitable quarter in company history. The Internet software developer earned $1 million, or a penny a share, on sales of $47.3 million.

First Call consensus expected it to lose 2 cents a share in its second fiscal quarter.

Ahead of the earnings report, Inktomi shares rallied up 24, or 26 percent, to 116.

The $47.3 million in sales marks a 211 percent jump from the year-ago quarter when it lost $7.4 million, or 7 cents a share, on sales of $15.2 million.

In the quarter, Inktomi's network products business recorded sales of $30.8 million, up 250 percent from the year-ago quarter.

Its portal service business chipped in with $16.5 million in sales, up 157 percent from the same period last year.

Intel will be very active Wednesday after it easily topped analysts' estimates in its first quarter, raking in $2.73 billion, or 78 cents a share, on sales of $8 billion.

First Call consensus expected the world's largest semiconductor manufacturer to earn 69 cents a share in the quarter.

Its shares closed up 6 to 129.

Net income, excluding acquisition-related costs, was $3.1 billion, or 88 cents a share, up 52 percent from the year-ago quarter.

Company officials said the Internal Revenue Service had closed its examination of the company's tax returns up to and including 1998. As part of this closure, the company reversed previously accrued taxes reducing the quarter's tax provision by $600 million, or 17 cents a share.

Exluding the tax gains, Intel earned 71 cents a share in the quarter.

The $8 billion in sales represents a 13 percent improvement from the year-ago quarter when it earned $2 billion, or 57 cents a share, on sales of $7.1 billion. However, sales were off 2 percent from the $8.2 billion it recorded last quarter.

RealNetworks will get a shot in the arm Wednesday after it posted a first quarter operating profit of $8.8 million, or a nickel a share, on sales of $53.5 million.

First Call consensus was expecting a profit of 4 cents a share.

Sales were up 120 percent from the $24.4 million in sales reported in the first quarter a year ago.

RealNetworks, which makes streaming media software, broke even on a per share basis in the same quarter a year ago.

In the first quarter, RealNetworks said it reported licensing revenue of $34.1 million with $11 million derived from services. Advertising accounted for the remainder of sales.

Its shares closed up 7 5/16 to 41 5/16 ahead of the earnings report.

Teradyne should take off Wednesday after it flew past Street estimates in its first quarter, posting a profit of $109.1 million, or 60 cents a share, on sales of $648.1 million.

First Call consensus expected the chip-equipment maker to earn 52 cents a share in the quarter.

Its shares closed up 4 175/256 to 91 239/256 ahead of the earnings report.

The $648.1 million in sales marks a stunning 88 percent jump from the year-ago quarter when it made $18 million, or 10 cents a share, on sales of $344.5 million.

Teradyne shares peaked at 99 9/16 last week after falling to a low of 21 13/16 in May.