Compaq Revises Forecast to Loss in 3rd Quarter
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Compaq Computer Corp., the nation’s No. 2 computer maker, said it now projects a loss in the third quarter, primarily because of difficulty moving merchandise by air following last month’s terrorist attacks.
For the quarter ended Sept. 30, the company expects revenue to be $7.4 billion to $7.5 billion, down 12% from the second quarter, and a loss per share of between 5 cents to 7 cents.
The company previously estimated it would post third-quarter earnings in the range of 7 cents to 9 cents per share and revenue between $8 billion and $8.4 billion.
Compaq announced a merger with Hewlett-Packard last month. The deal must still be approved by regulators and shareholders.
Analysts surveyed by Thomson Financial/First Call had predicted Compaq’s third-quarter earnings of 5 cents per share and revenue of $8.2 billion.
Officials said Compaq lost $700 million in the days after the attacks when all air traffic was temporarily grounded.
Compaq stock, which rose 2 cents to $8.33 on the New York Stock Exchange, fell 8% to $7.66 in after-hours trading.
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