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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (145877)	10/27/1999 10:53:00 AM
From: TechMkt	Read Replies (2) \| Respond to of 176387

Can someone please read my bolded portion and tell me what that means please? Did CPQ fudge the EPS numbers? Fez ________________________ Wednesday October 27, 10:27 am Eastern Time Company Press Release Robertson Stephens Lowers Estimates on Buy Rated CPQ SAN FRANCISCO--(BUSINESS WIRE)--Oct. 27, 1999--Robertson Stephens Managing Director and Senior Electronics Analyst Daniel T. Niles, a 1999 Wall Street Journal Analyst and a 1999 member of the Institutional Investor All-America Research Team, today lowered estimates on Buy rated Compaq Computer (NYSE:CPQ - news). The company is the leading brand name in the manufacturing of PC servers, desktop and portable personal computers ``Compaq reported revenues of $9.2 billion, up 5 percent year-over-year, versus our $9.8 billion forecast and $0.04 in fully taxed operating earnings-per-share, versus our $0.05 forecast,' said Niles. ``The company reported that operating earnings-per-share was $0.07, but assumed a zero-percent tax rate. Product revenues were $7.6 billion, up 4 percent year-over-year, versus our $8.1 billion forecast,' said Niles. ``Units grew 19 percent year-over-year for Compaq, versus 26 percent for the industry. The company's unit growth is down from 54 percent in the second quarter.' ``We believe Compaq lost market-share worldwide and in the US and anticipates losing more going forward, as it struggles to become profitable,' said Niles. ``This was driven by less-competitive products, continued-inventory reduction, pricing pressure and component shortages.' ``The total PC operating loss was $104 million, versus $178 million last quarter, with losses also expected in the fourth quarter,' said Niles. ``Service revenues were $1.6 billion, up 7 percent year-over-year, versus our $1.7 billion forecast.' ``We are lowering our fourth-quarter earnings-per-share estimate to $0.13 from $0.15 and fiscal 2000 to $0.95 from $1.10,' said Niles. ``Fourth-quarter revenues due to Y2K will likely be the wild card, given that 36 percent of third quarter revenues were enterprise products, with another 30 percent in commercial PCs.' ``We believe the stock has probably bottomed given the valuation but near-term upside catalysts are definitely limited,' said Niles