Compaq Raises Earnings Forecast
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Compaq Computer Corp. Friday raised its outlook for fiscal 2002, saying it would earn 32 cents per share, compared with Wall Street's consensus of 25 cents.
Revenues would be $34 billion, Compaq said in a statement. That compared with analysts' estimates of $32.6 billion.
Compaq, which plans to merge with Hewlett-Packard Co. , cited expected demand for data storage by corporations, demand for server computers based on Intel Corp. microchips and increased demand for security products and managed services.
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Shares of Compaq, which had been trading at a slight loss on the New York Stock Exchange, were up 12 cents, or 1 percent, from the previous close, at $12.17.
"Clearly, Compaq's fourth quarter showed continued customer acceptance. Our focus on execution in 2001 -- particularly with regard to operating improvements -- provides Compaq with tremendous financial leverage in 2002 that will yield earnings per share growth," Jeff Clarke, Compaq's chief financial officer, said in a statement.
He was due to speak later at an analyst meeting.
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Compaq said on Jan. 16 that, in the first quarter, it would make a profit of 1 cent per share on sales of $7.6 billion and analysts polled by Thomson Financial/First Call then raised consensus forecasts to those levels.