HOUSTON - Compaq Computer Corp. on Friday raised its estimates for earnings during 2002, saying that demand is strong for equipment and technical help. <br>
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Compaq said it expects to earn 32 cents per share for the year. Analysts surveyed by Thomson Financial/First Call had expected earnings of 25 cents a share. <br>
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The company said it expects revenues of $34 billion in 2002, about a 1 percent increase over last year. <br>
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Officials made the comments during a meeting with analysts in New York. <br>
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Houston-based Compaq is the nation's No. 2 manufacturer of personal computers, and it also sells a variety of other computer equipment and services. <br>
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Hewlett-Packard Co. has agreed to buy Compaq for $24.2 billion with an eye toward selling complete packages of equipment and technology services. But the deal is still awaiting regulatory approval and faces an uncertain outcome when HP shareholders vote on the deal. <br>
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Compaq has been hurt recently by sluggish demand for PCs and loss of market share to rival Dell Computer Corp. Compaq said it hoped to return its PC business to profitability in the third quarter. <br>
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Compaq also said it would focus on increasing its global services work and improve its cost structure - although it didn't detail cost cuts. <br>
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The company said the revenue outlook was improving because of expanded demand for data-storage equipment, servers, security assistance and services. <br>
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In trading Friday on the New York Stock Exchange, Compaq shares fell 10 cents to $11.95. Hewlett-Packard shares fell 16 cents to $22.47. <br>
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The improved outlook did not impress the leading opponent of the HP-Compaq deal, HP board member Walter Hewlett, who said the revised estimates still fall below what Compaq's 2002 projections were when the merger was announced Sept. 3. He said HP is paying far too much for Compaq.
