Compaq Computer raised the bar for its fourth-quarter 2001 earnings Monday, saying that it would exceed its previous guidance and ring in a profitable quarter.
The company said that it now expects to report fourth-quarter revenues of more than US$8 billion, rather than the $7.6 billion to $7.8 billion it said it expected earlier, which would have given the Compaq a loss per share of $0.03.
Compaq will announce its full fourth quarter 2001 and full-year results on January 16.
Last October Compaq reported a 33 per cent drop in third-quarter revenue from the previous quarter to $7.5 billion, or $0.07 loss per share, saying that the September 11 terrorist attacks in the US were the last straw in an already tough, recession-plagued quarter. At that time, Compaq Chief Executive Officer Michael Capellas called the company's string of woes "the perfect storm."
The revised fourth-quarter figure would bring the company back to profitability, however, thanks to what Capellas said in a statement was his employees' continued focus on Compaq's business and customers.
Compaq's stock (CPQ) was up 5.09 per cent to $11.97 in early trading Monday following the revised guidance announcement.