Compaq CEO Comfortable With 2000 Estimates
HOUSTON (Reuters) - Compaq Computer Corp. (NYSE:CPQ -
news), the world's No. 1 personal computer maker, is on track to at
least double revenues in the year 2000, which would allow it to
meet Wall Street's current earnings expectations, its Chief
Executive said on Friday.
Speaking to financial analysts and fund managers at the computer
maker's Houston headquarters, Compaq Chief Executive Michael
Capellas said he was comfortable with the current consensus
earnings estimate of $1.06 per share.
''The consensus number out there is $1.06, excluding the
investment gains and Alpha/NT charge,'' Capellas said, referring to
one time items.
Compaq stock closed down 3/4 to 27 3/16 on the New York Stock
Exchange.
Earlier, the Compaq executive had told the audience that a 15
percent revenue growth rate was his goal for the current year, but
that 10 to 12 percent growth was a reasonable baseline
expectation.
At a news conference that followed the annual financial briefing,
Capellas answered some analysts' concerns by saying that his
comfort with current earnings projections were predicated on the 10
percent revenue target, not the optimistic 15 percent goal.
''I'm still giving my comfort level on the $1.06,'' based on the 10
percent revenue estimate for the year 2000 he said, responding to a
question by Reuters.
The figures exclude an expected $50 million to $100 million in gains
on an equity investment portfolio that the company expects to
record in each quarter during the coming year. It also excludes the
previously disclosed charge of $50 to 60 million to discontinue its
planned integration of Microsoft Windows NT software on Compaq's
Alpha microprocessor. Those latter charges will be doled out over
the first and second quarter of this year, he said.
Compaq, whose performance had been flagging amid growing
competition from other PC makers like Dell Computer Corp.
(NasdaqNM:DELL - news) and Gateway Inc. (NYSE:GTW - news)
that sell PCs directly to customers, earned $569 million, or 34
cents a share, on revenues of $38.53 billion in all of 1999. Those
1999 results included a $1.2 billion gain on the sale of businesses
that was partly offset by $868 million in restructuring charges.
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Compaq CEO Comfortable With 2000 Estimate (January 28)
Compaq CEO Sees Revenue Growth 10-12 Pct (January 28) |
