Thread: Here's some downgrades. However, look at the 3rd paragraph of the article wherein a cpq spokesman does not alter guidance. What is going on I wonder?
Analysts Cut Profit Estimates for Compaq; Firm Says It Hasn't Changed Its Outlook
Dow Jones Online News, Wednesday, March 14, 2001 at 00:17
(Published on Tuesday, March 13, 2001 at 21:17)
Wall Street analysts are paring their first-quarter earnings projections for Compaq Computer Corp., one of a few big tech companies that has not recently lowered its expectations, Wednesday's Wall Street Journal reported.
Amid worries that the U.S. computer-spending slowdown has spread to Compaq's key markets, analysts appear to be embracing a consensus profit of about 17 cents a diluted share, compared with a prior consensus of 20 cents a share, according to Charles R. Hill, research director at First Call/Thomson Financial. Current estimates range from a high of 22 cents to as low as 15 cents a share.
Yesterday, a Compaq (CPQ) spokesman said the company hadn't altered its outlook. In January, Chief Executive Michael D. Capellas said the Houston computer maker was expecting a profit of 21 cents a share on sales of $9.5 billion. A year ago, it earned 16 cents a diluted share on sales of $9.51 billion in the first quarter. Compaq is expected to release results for on April 24.
In January, Mr. Capellas pegged Compaq's outlook on continued gains in server-computers and data-storage products as well as healthy international sales. Since then, server and storage rivals Sun Microsystems Inc. and EMC Corp. have lowered their forecasts, and chip maker Intel Corp. has sharply cut its outlook.
"Everything [Compaq is] in is under pressure," said Bear Stearns & Co. analyst Andrew J. Neff, who in late February pared his profit estimate for Compaq to 17 cents a share on revenue of $9.5 billion. Mr. Neff also sliced his full-year estimate to 75 cents a share from $1.15 and lowered his sales projection to $40.4 billion, down $5.2 billion from a prior estimate.
Since Mr. Neff lowered his outlook, analysts at J.P. Morgan Chase's JP Morgan H&Q, Salomon Smith Barney Inc., Robertson, Stephens Inc., Wit SoundView Corp. and Lehman Brothers have followed suit. |
