For those who have not seen it this is the WSJ announcement. Frankly, I don't believe the 15 cents - and I'm not in denial. It will be at least 17 cents. The figures just don't add up. $9.4 billion against average estimates of $9.7 billion does not add up to 15 cents as against average estimates of $31/32 cents.
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April 9, 1999
Compaq Warns It Expects Results
To Trail Estimates From Analysts
An INTERACTIVE JOURNAL News Roundup
Compaq Computer Corp. warned late Friday that it expects first-quarter results to come in below analysts' estimates, citing price competition and lower-than-expected market demand.
Compaq said it expects to report per-share net income of 15 cents on revenue of $9.4 billion. Analysts surveyed by First Call had expected the Houston computer maker to report net income of 31 cents a share.
Company Profile: Compaq Computer
"The quarter's shortfall reflects lower than anticipated market demand and increased competitive pricing in the commercial PC sector," said Earl Mason, Compaq's chief financial officer.
James D. Poyner, an analyst with CIBC World Markets, said earlier this week that he expected Compaq to report revenue of $9.8 billion, helped by its high-margin server computer business.
Compaq noted that its estimated results are preliminary; the company expects to announce final results April 21.
"While market conditions will continue to be competitive, we fully intend to expand our business and grow market share profitably in 1999," said Chief Executive Officer Eckhard Pfeiffer.
Shares of Compaq closed Friday at $30.9375, up $1.3125 on the New York Stock Exchange. The earnings announcement was made after the close of trading.
Analysts have expected leading U.S. computer makers to report mostly improved first-quarter results from last year, when turmoil in Asia and a retail-inventory glut of PCs hurt sales and margins.
The first quarter is usually slow for computer makers because spending by consumers shrinks after Christmas, and corporate orders slow after the usually strong fourth quarter. |
