STOCKS IN NEWS,COMPAQ COMPUTER ****
MarketScope, Tuesday, October 26, 1999 at 19:59
10/26/99 7:45 pm... STILL ACCUMULATE COMPAQ COMPUTER (CPQ 19-1/4****)... Posts
Q3 operating EPS of $0.07 vs. $0.07... in line with our estimate, $0.02 above
Street mean... Cost cuts offset disappointing revenues, up 5%... Weakness in
commercial PCs, leading to inventory cuts and market share loss with
small/medium-size businesses, offset surprising enterprise sales strength...
Gross margin 23% vs. 25%, in line.. Despite strong orders, co. sees tough Q4,
cautious on Y2K impact... Cutting our '99 est. $0.12 to $0.30, '00's $0.25 to
$1.45 on lower expected revenue, gross margin... But at just 13X '00 est., CPQ
attractive./M.Graham Hackett |
