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CNNfn market movers
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February 24, 1999: 3:02 p.m. ET
Street punishes profit warnings from American Greetings, Tropical Sportswear
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NEW YORK (CNNfn) - The fundamentals were foremost on the minds of jittery investors Wednesday, with technology profits largely finding favor but a substantial number of disappointments and warnings of gloom ahead getting an icy response.
Aztec Technology (AZTC), which supplies computer services, got an encouraging round of applause from shareholders and investment firm Friedman Billings alike after posting estimate-beating quarterly profits. Friedman upped the stock to a "buy," while shares climbed 3/8 to 4-1/2 on Wall Street.
Software developer BEA Systems (BEAS) was likewise blessed, climbing 1-15/16 to 17-7/8 on the strength of its own better-than-expected fourth quarter. Lehman Brothers raised its outlook on the stock's near-term price to $25 from $20.
Fellow software maker J.D. Edwards (JDEC) firmed 13/16 to 15-9/16 on its unexpectedly firm but still sliding first-quarter profits.
Telecom equipment maker Ciena (CIEN) jumped 3-1/8 to 27-3/4 in an aftershock from last week's profit surprise as Robertson Stephens analyst Paul Silverstein recommended the stock as a "buy." In his comments, Silverstein said the company's increasing profit margin was encouraging after a full year of declines, and he expects "a continued rebound."
Among non-technology companies seeing the upside of earnings, Oxford Health Plans (OXHP) climbed 1-1/8 to 20-1/4 ahead of its Thursday release of fourth-quarter results, while medical products company Biomatrix (BXM) soared 8-7/16 to 64-11/16 on solidly positive fourth-quarter profit figures.
BancBoston Robertson Stephens analyst Wade King repeated his "buy" recommendation on Biomatrix stock, setting a price target of $95.
Not all profits rewarded
Symbol Technologies (SBL) shares fell 6-1/4 to 53-7/8 after the company reported earnings that either beat or fell short of the official Wall Street estimate of 41 cents per share, depending on whether charges for a canceled acquisition were included. Investors saw the glass as half-empty, punishing the stock.
Boston Scientific (BSX) was a more ambiguous story, sliding 11/16 to 26-15/16 after its fourth-quarter earnings "confused" investors but met expectations once accounting charges were ignored.
ING Baring Furman Selz analyst Sam Navarro reiterated his "buy" rating on the medical device maker's stock, noting that the company expects "renewed growth momentum" starting in fourth-quarter 1999.
Pet supplier Petsmart (PETM) also slid, falling 1-5/16 to 7-11/16 on earnings that met expectations but did not provide Wall Street with any buying optimism.
Vitamin maker Twinlab (TWLB) tumbled 2-11/16 to 6-13/16 after warning that first-quarter 1999 profits will fall short of expectations, while Tropical Sportswear (TSIC) plunged 9-3/4 to 22-1/8 on a similar notice of disappointing sales and earnings ahead.
American Greetings (AM) was one of the day's biggest decliners, tumbling 10-15/16 to 24-1/8 after the greeting-card maker said it will meet short-term earnings forecasts but fiscal 2000 revenues and profits will be sharply lower.
Splits and Net deals
Immunex (IMNX) shares retreated 7-9/16 to 151 despite the biotech company's overnight announcement that it will split two-for-one, the first such split in its history. However, the stock had climbed nearly 21 points on Tuesday as shareholders had widely anticipated the news, buying the rumor and then selling the fact.
Investors reacted better to America Online (AOL), which climbed 2-3/8 to 90-3/8 after its most recent split went into effect.
Disney (DIS) shares gained 11/16 to 35-9/16 after the media giant announced that its Go Networks Web portal will offer a comprehensive online shopping service. Infoseek (SEEK), which owns half of Go, soared 3-3/16 to 74-7/16, while clothing retailer Bluefly (BFLY), which announced it will anchor part of the service, climbed 2-13/16 to 13-1/16.
The Internet proved a less encouraging venture for two other companies. Shares of software maker Peoplesoft (PSFT) slid 1/2 to 20-1/2 after the firm said it will start offering Internet applications later this year.
Fellow software firm Brio (BRYO) fell 4-3/4 to 19 after the company absorbed privately-held Internet rival Sqribe for $270 million in stock. C.S. First Boston cut its rating of Brio shares to "buy" from "strong buy."
Old-fashioned mergers
Among deals having no direct Internet relationship, majority shareholders of instrument maker Industrial Scientific (ISCX) agreed to a $26 million cash buyout offer from privately held ISC Acquisition. Industrial Scientific shares climbed 7 to 21-1/2.
Shares of Michigan banking company CFSB Bancorp (CFSB) soared 5-9/16 to 26-9/16 after the company agreed to a $242 million merger with Midwestern financial services provider Old Kent Financial (OK). Old Kent shares dipped 3/4 to 44-11/16.
Finally, in a continuation of Monday's natural gas consolidation fervor, Dominion Resources (D) shares gained 1-1/16 to 39-13/16 after the company's natural gas subsidiary Dominion Energy made a $34 million friendly buyout offer for Canadian competitor Remington Energy. 
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