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Hot Stocks: Ciena setback
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April 27, 2001: 1:16 p.m. ET
Optical networker downgraded; Security software maker VeriSign tops estimates
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NEW YORK (CNNfn) - Shares of optical networking company Ciena fell Friday afternoon after Salomon Smith Barney downgraded the stock.
Investors bought biotechnology stock, encouraged by narrower-than-expected losses from Gilead Sciences, Human Genome Sciences and Amgen.
VeriSign shares rose after the security software company reported first-quarter operating profit that topped Wall Street's expectations. Starbucks fell after the coffee retailer said slowing revenue would hurt the rest of 2001.
Friday's losers
Ciena (CIEN: down $2.82 to $49.33, Research, Estimates). Salomon Smith Barney cut its rating on the optical networker to "outperform" from "buy."
Starbucks (SBUX: down $2.22 to $37.46, Research, Estimates). The coffee retailer reported late Thursday that fiscal second-quarter earnings met analysts' expectations, but warned of slowing revenue and per store sales growth for the rest of 2001. The stock splits 2-for-1 after the bell Friday.
Olin (OLN: down $5.08 to $17.45, Research, Estimates). The copper company reported first-quarter earnings of 6 cents a share, down from 43 cents one year earlier, although better than analysts' expectations of a profit of 1 cent a share. The company also revised its previous full year forecast, saying that it would miss the $1.80 estimates and now expected earnings closer to $1.
K-Swiss (KSWS: down $5.86 to $23.12, Research, Estimates). The footwear firm reported first-quarter earnings of 63 cents a share, 3 cents short of Wall Street views. For the second quarter, K-Swiss forecast earnings of 27 to 34 cents a share on revenue of $51 million to $54 million, below the current consensus analysts' estimate for a profit of 35 cents.
XO Communications (XOXO: down $0.57 to $3.75, Research, Estimates); Level 3 Communications (LVLT: down $0.51 to $12.53, Research, Estimates). UBS Warburg cut the full-year price target of XO, a voice and data services company. Lehman Bros. cut the full-year price target for Level 3, from which XO has revised an agreement to purchase fiber networks.
Clear Channel Communications (CCU: down $2.54 to $56.20, Research, Estimates). The largest U.S. radio broadcaster reported a wider-than-expected first quarter loss and warned of lower second-quarter results.
Corning (GLW: down $0.22 to $20.78, Research, Estimates).The maker of fiber-optic cable reported first-quarter profit that topped forecasts, but warned of lowered earnings and sales estimates for the rest of 2001, citing the continued economic slowdown in the United States. It also added 1,000 job cuts to the 3,300 previously announced.
Friday's winners
Gilead Sciences (GILD: up $2.11 to $43.80, Research, Estimates). The biotech developer said its first-quarter loss widened from a year earlier on higher research and development costs, but the loss was smaller than analysts expected -- in part because of sales of its antifungal drug AmBisome.
Human Genome Sciences (HGSI: up $2.63 to $58.48, Research, Estimates).The biotech said Friday that its first-quarter loss from operations widened as it continued to spend on research and development, and it forecast a full-year loss roughly in line with analysts' estimates. Net loss was 10 cents a share, narrower than the First Call analysts' consensus of 11 cents per share.
Amgen (AMGN: up $4.01 to $59.90, Research, Estimates).The biotech company beat analysts' consensus estimates for first-quarter earnings by a penny a share, but the company lowered its guidance for the full year due to a slower-than-expected trial time for a dialysis drug.
VeriSign (VRSN: up $4.98 to $51.20, Research, Estimates). The security software maker and domain name registrar logged a first-quarter operating profit late Thursday that soared past Wall Street's expectations, citing continued strong demand for its products and services.
Lucent Technologies (LU: unchanged at $10.68, Research, Estimates). French telecom equipment maker Alcatel has held preliminary talks with Lucent Technologies about a full merger, the Wall Street Journal reported Friday, citing people familiar with the matter. Alcatel said Thursday it had made a bid for Lucent's fiber-optic cable business.
Proxicom (PXCM: up $1.32 to $5.65, Research, Estimates). The stock shot up more than 30 percent after Compaq Computer said that it bought the e-business consulting company for $266 million, or about $5.75 per share in cash.
Invitrogen (IVGN: up $5.63 to $67.50, Research, Estimates). The biotech research company posted first-quarter operating earnings that surpassed Wall Street expectations.
--from staff and wire reports 
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