Thanks to stronger than expected sales, Compaq Computer Corp. said today that it will post a profit, rather than a loss, for the fourth quarter.
According to a statement issued this morning, Compaq said it now expects its revenue for the fourth quarter to exceed $8 billion. Previous guidance and consensus estimates for the fourth quarter were revenues of $7.6 to $7.8 billion and a loss of $0.03 per share.
The good news comes amid continued controversy of the Houston-based computer makers proposed merger with Hewlett-Packard Co. Since it was announced in early September, heirs of HPs co-founders have declared their opposition to the $25 billion deal that would merge the companies under the HP name.
Industry analysts and investors have worried that the highly publicized debate over the merger could undermine sales efforts by the two computer makers, but todays announcement by Compaq ease those concerns.
"These results represent strong execution and Compaqs solid momentum in the marketplace, Michael Capellas, Compaq chairman and CEO, said in a statement accompanying the companys release. ``I am extremely proud of our employees and their continued focus on our business and our customers.
Compaq, the worlds second largest PC company, will announce full results for the quarter and fiscal year 2001 on Jan. 16.