Company Report: Yahoo!'s Drop Leads the Way for Other Tech Stocks

Yahoo!

(YHOO)

took a beating today at the hands of jittery investors ahead of its earnings report. The stock ended the day off 38 11/16, or 8.9%, to 397 3/8, leading the way down for technology stocks.

Despite the best efforts of

Intel

(INTC) - Get Report

which rose 3 7/8 to 89 11/16, and

Coca Cola

(KO) - Get Report

which gained 2 to 60 13/16, the

Dow Jones Industrial Average

was unable to hold onto its earlier gain.

Mergers, acquisitions and joint ventures

British Telecom

(BTY)

shed 6 5/16 to 192 1/2 after saying it entered a pact to purchase Ireland-based

Esat Telecom

(ESAT)

in a deal valued at $2.46 billion. British Telecom said the transaction was favored by Esat's board. Esat slipped 3 3/8 to 97.

Du Pont

(DD) - Get Report

dropped 1 1/4 to 68 3/4 after it said it was teaming up with

Borealis

for a plastics manufacturing joint venture that would involve Du Pont taking 50% of Borealis' plant near Antwerp, Belgium.

Medco Research

(MRE)

lost 1/4 to 31 3/4 after it said a large shareholder had filed suit seeking to block the proposed $350 million acquisition of the company by

King Pharmaceutical

(KING)

. King lost 1 1/2 to 57 1/2.

Pegasus Communications

(PGTV)

popped 10, or 10.4%, to 106 5/8 after it agreed to acquire

Golden Sky

in a $1 billion deal. According to the terms, Pegasus would issue 6.5 million Class A common shares to Golden Sky shareholders and take on roughly $373 million of Golden Sky's debt. Pegasus also said it plans to sell its Puerto Rico-based cable system to

Centennial Cellular

(CYCL)

in a cash transaction of $170 million. Centennial climbed 7/8 to 83 3/4.

Texas Instruments

(TXN) - Get Report

slipped 15/16 to 99 1/2 and

Clarent

(CLRN)

climbed 2 3/4 to 75 3/4 after the companies said they have inked a pact on the creation of Internet protocol telephony products.

Earnings/revenue reports and previews

(

Earnings estimates from First Call/Thomson Financial; earnings reported on a diluted basis unless otherwise specified. New highs and lows on a closing basis unless otherwise specified.

)

Network-chip maker

Applied Micro Circuits

(AMCC)

shed 8 15/16, or 8.2%, to 136 3/32 after it

reported earnings of 21 cents a share for the fiscal third quarter of 2000, which ended Dec. 31. The results were 2 cents higher than the

First Call/Thomson Financial

consensus and 1 cent better than the company estimated in a Jan. 3 earnings preannouncement.

Goldman Sachs

upped its fiscal 2000 earning estimate to 71 cents a share from 65.

Bank One

(ONE) - Get Report

was unchanged at 30 1/4 after saying it expects to report fourth-quarter earnings of 78 cents a share, a penny below the 25-analyst estimate of 79 cents. The bank said it would report fiscal 2000 earnings of $2.80 to $3 a share, greatly missing the 26-analyst estimate of $3.42. The disappointing outlook is linked to its financially floundering credit card unit

First USA

, which triggered profit warnings in August and November. The company said it saw 1999 earnings of $3.45 to $3.55 a share. The 26-analyst estimate sees the company posting fiscal 1999 earnings of $3.46 a share.

For more on Bank One's latest earnings

warning, check out the coverage from

TheStreet.com/NYTimes.com's

joint newsroom.

Biogen

(BGEN)

lost 5 13/16, or 7.2%, to 74 15/16 despite saying it sees its fourth-quarter earnings coming in at roughly 44 cents a share, edging out the 23-analyst estimate of 42 cents a share. The company also said it expects its multiple sclerosis drug

Avonex

to rake in roughly $180 million, up from last quarter's $163.4 million.

Cambrex

(CBM) - Get Report

inched up 1/8 to 32 3/4 after it said it would post fourth-quarter earnings at the top end of the analyst range of 40 to 47 cents a share. The company said it sees a $5 million to $6 million accrual to cover expected government settlements, associated litigation and costs related to its part in Vitamin B3 antitrust violations from 1992 to 1995.

Charlotte Russe

(CHIC) - Get Report

gained 1/8 to 18 3/8 after it posted first-quarter earnings of 22 cents a share, beating the four-analyst estimate of 19 cents and the year-ago 15 cents.

Chevron

(CHV)

slipped 13/16 to 87 1/16 after it set its 2000 capital and exploratory spending at $5.2 billion. The amount represents a 16.5% reduction from estimated 1999 spending levels.

Centura Banks

(CBC)

was unchanged at 39 5/8 after it posted fourth-quarter earnings of $1.05 per share, missing the 11-analyst estimate by a penny but up from the year-ago 88 cents.

Compuware

(CPWR)

climbed 1 5/16, or 5.7%, to 24 9/16 after it said after yesterday's close that it expects its third-quarter earnings before items to match or beat the 13-analyst estimate of 33 cents a share. Compuware said its total third-quarter revenue would be in the range of $620 million to $633 million, more than 45% above year-ago levels, but warned that its professional service revenue would fall below expectations.

Compuware also said it was once again extending its $9-a-share tender offer for

Viasoft

(VIAS)

, this time until Jan. 18. Shares of Viasoft were unchanged at 6 3/8. This morning,

Credit Suisse First Boston

analyst Wendell Laidley cut its price target on Compuware to 42 from 51.

Fortune Brands

(FO)

climbed 15/16 to 31 1/2 after it said it expects to report 11% growth in diluted full-year 1999 earnings-per-share before items, according to CEO Norm Wesley.

Hillenbrand

(HB)

slipped 3/4 to 32 13/16 after it reported fourth-quarter earnings of 58 cents a share, beating the five-analyst estimate of 56 cents but down from the year-ago 75 cents.

International Paper

(IP) - Get Report

lost 2 11/16 to 55 13/16 despite posting fourth-quarter earnings of 55 cents a share, beating the 13-analyst estimate of 51 cents and the year-ago 14 cents a share.

Juno Online Services

(JWEB)

jumped 3 1/2, or 9.2%, to 41 5/8 after it posted a fourth-quarter loss of 45 cents a share, narrower than the three-analyst estimate of a 55-cent loss.

Mentor Graphics

(MENT)

lost 1/4 to 12 1/16 after it said it is on track to meet the 10-analyst fourth-quarter earnings estimate of 25 cents a share.

Newhall Land

(NHL)

slipped 3/16 to 27 7/8 after it said it made an upward revision of its fiscal 1999 earnings to $2.80 to $2.85 per unit, edging the two-analyst estimate of $2.74 per unit.

priceline.com

(PCLN)

lost 1 3/8 to 52 13/16 after it said single-day sales hit $3 million for the first time ever, and said its airline and hotel services set 7-day sales records.

Sodexho Marriott

(SDH)

inched up 5/16 to 12 11/16 after it reported first-quarter earnings of 44 cents a share, in line with the three-analyst estimate but down from the year-ago pro forma earnings of 45 cents.

Total Systems Services

(TSS) - Get Report

lost 1/4 to 16 1/8 after it reported fourth-quarter earnings of 10 cents a share, in line with the single-analyst estimate and up from the year-ago 9-cent profit.

Offerings and stock actions

Corning

(GLW) - Get Report

slid 10 9/16, or 9%, to 107 7/16 after it said it plans to offer 13 million shares in a $2 billion shelf registration.

Forward Air

(FWRD) - Get Report

fell 2 3/16 to 43 7/16 after it said it set a 3-for-2 stock split.

International Bancshares

(IBOC) - Get Report

inched up 1/2 to 41 1/2 after it said it increased its current $22.5 million repurchasing program to $35 million.

Analyst actions

Warburg Dillon Read

sliced its fourth-quarter earnings estimate on

Aon

(AOC)

to 40 cents a share from 58 cents and its 1999 estimate to $2.07 per share from $2.25.

Goldman Sachs

also cuts its 1999 estimate to $2.10 from $2.30.

Salomon Smith Barney also downgraded the shares, to neutral from buy, and lowered its 2000 estimate to $2.10 a share from $2.60. Shares slipped 1 7/8, or 6.2%, to 28 1/4.

J.P. Morgan

upped its price target on

American Express

(AXP) - Get Report

to 175 from 150. Shares rose 1 7/16 to 156.

Warburg Dillon Read rolled out coverage of

Chromavision

(CVSN)

with a buy rating and set a price target of 25. Shares gained 1 3/16, or 9.1%, to 14 3/4.

ING Barings

cut its rating on

Dana

(DCN)

to hold from buy. Shares slipped 1/16 to 30 9/16.

U.S. Bancorp Piper Jaffray

initiated coverage of

Egreetings

(EGRT)

with a buy rating. Egreetings inched up 1/4 to 11 1/4.

Deutsche Banc Alex. Brown

sliced its rating on

Excite@Home

(ATHM) - Get Report

to a market perform from buy in the wake of the

America Online

(AOL)

/

-Time Warner

(TWX)

merger announcement. Shares of Excite dropped 2 15/16, or 7.3%, to 37 1/8. AOL lost 8 1/4, or 11.4%, to 64 3/8, and Time Warner dropped 6 1/8, or 6.6%, to 86 1/8.

Separately,

Schroders

said it cut its price target on AOL to 85 from 105 and lowered its rating to outperform from outperform significantly on concerns that its new agreement with Time Warner will slow AOL's growth rate and arbitrage will pressure its shares. Credit Suisse cut its ratingon Time Warner to a hold from a buy, while PaineWebber increased its price target on the shares to 170 from 90.

Credit Suisse First Boston

upped its ratings on

Coca-Cola

(KO) - Get Report

and

PepsiCo

(PEP) - Get Report

to strong buy from a buy. Shares of Coca-Cola bounced up 2 to 60 13/16 and Pepsi skidded 1/8 to 36 3/4.

ING Barings

lowered its rating on shares of

Ford

(F) - Get Report

to a hold from a buy and set a price target of 58. Shares of Ford slid 1 7/16 to 52 3/16.

SG Cowen

rolled out coverage of

Galileo Technology

(GALT) - Get Report

with a buy rating. Shares of Galieo Technology tacked on 13/16 to 24 15/16.

ING Barings upped its rating on

Gentex

(GNTX) - Get Report

to strong buy from buy. Shares of Gentex lost 1/8 to 26 1/16.

ING Barings sliced its rating on

General Motors

(GM) - Get Report

to hold from strong buy. Shares of General Motors skidded 2 9/16 to 72 15/16.

Banc of America Securities

maintained its buy rating on

Infosys

(INFY) - Get Report

. Shares of Infosys plummeted 21, or 5.8%, to 337.

Credit Suisse First Boston

upped its rating on

Intel

(INTC) - Get Report

to a strong buy and raised its price target to 150. Shares of Intel shot up 3 7/8 to 89 11/16.

SoundView Technology

upped its rating on

J.D. Edwards

(JDEC)

to a strong buy and set a price target of 75. Shares of J.D. Edwards popped up 7 7/16, or 23.6%, to 38 15/16.

ING Barings raised its rating on

Lear

(LEA) - Get Report

to strong buy from buy. Lear shares declined 7/16 to 33 1/16.

Warburg Dillon Read

stamped

LSI

(LSI) - Get Report

and

MIP Technologies

(MIPS)

as its top picks for the first quarter of 2000. Shares of LSI fell 3/8 to 65 11/16 and MIP Technology gained 7 9/16, or 17.4%, to 51.

Merrill Lynch

upped its rating on

McKesson HBOC

(MCK) - Get Report

to near-term accumulate from neutral. McKesson HBOC shares tacking on 3, or 12.5%, to 27.

Wachovia

upgraded shares of

Newbridge Networks

(NN)

to a long-term buy from a neutral. Shares of Newbridge Networks hopped up 1 5/16, or 5.4%, to 25 3/8.

Morgan Stanley Dean Witter rolled out coverage

PMC-Sierra

(PMCS)

with an outperform rating. Shares of PMC-Sierra dropped 10 11/16, or 6.5%, to 152 7/8.

Deutsche Banc Alex. Brown rolled out coverage of

PSS World Medical

(PSSI)

with a buy rating. PSS World Medical edged up 5/16 to 10 7/8.

Morgan Stanley

sliced its rating on

Quantum DLT & Storage Systems Group

(DSS) - Get Report

to neutral from outperform, while Goldman Sachs lowered its rating to market outperformer from trading buy. Shares of Quantum DLT & Storage Systems retreated 3 1/4, or 27%, to 8 3/4.

Goldman Sachs

lowered its fiscal 2000 earnings estimate on

Seagrams

(VO) - Get Report

11 cents a share to 19 cents. Shares of Seagrams mounted 3/4 to 54 3/4.

Merrill Lynch lifted its rating on

Southwest Airlines

(LUV) - Get Report

to near-term accumulate from neutral. Shares of Southwest bounced 1/2 to 16 9/16.

J.P. Morgan started coverage of

USinternetworking

(USIX)

with a buy rating and set a 12 price target of 77. Shares of Usinternetworking gained 5 5/16, or 11.6%, to 51.

Deutsche Banc Alex. Brown upped its price target on

Winstar Communications

(WCII)

to 94 from 81. Shares of Winstar Communications tacked on 2 3/4 to 75 13/16.

Lehman Brothers

said it increased its price target on

Vitesse Semiconductor

(VTSS)

to 72 from 46. Shares Vitesse Semiconductor skidded 4 3/8, or 8.8%, to 45.

Miscellany

The Securities and Exchange Commission

brought and settled an order against

Informix

(IFMX)

, alleging that former employees fraudulently overstated revenue by $245 million and earnings by $244 million between 1994 and the first quarter of fiscal 1997. The SEC said it discovered that Informix infringed on the antifraud provisions of federal securities laws and certain provisions of the

Securities Exchange Act of 1934

. Informix accepted the order without admitting or denying the SEC's conclusions.

The SEC also said that former employees of the company issued false and misleading filings from 1994 to the first quarter of 1997, which included the falsification of books and records. Under new management, the company and auditors have turned up over $100 million in accounting irregularities and have restated financial statements. The SEC is continuing its investigation and ordered Informix to comply with securities laws. Shares of Informix shedded 13/16, or 7.2%, to 9 3/8.

Microsoft

(MSFT) - Get Report

said it

settled an antitrust lawsuit, ending a three-year legal battle. No, not

that

antitrust suit. This claim was brought against it by software company

Caldera

, which filed the suit in July 1996, charging Microsoft with illegally trying to maintain its monopoly in operating systems. At the time, Caldera was seeking $1 billion in damages. Although the terms of the settlement were kept confidential, Microsoft said it will take a charge of 3 cents a share in the third quarter. Salt Lake City-based Caldera said it was pleased with the result but added -- in a sign that the companies are not planning on living happily ever after together -- that it will push the Linux operating system, an emerging rival to Microsoft's Windows platform. Shares of Microsoft lost 2 7/8 to 109 3/8.

Toys R Us

(TOY)

said it has tapped John Eyler as its president and CEO. Shares of Toys R Us declined 1 1/16, or 8.4%, to 11 9/16.

As originally published, this story contained an error. Please see

Corrections and Clarifications.