Compaq

(CPQ)

was down 1.4% in preopen

Instinet

trading. After the close Thursday, the company lowered its first-quarter earnings estimate to 12 cents to 14 cents per share, below the

First Call/Thomson Financial

estimate of 18 cents.

The PC company also said it will cut 5,000 jobs, or about 7% of its workforce. Compaq said it is also taking steps to improve its business model and will record a restructuring charge of $125 million to $150 million in the first quarter.

Credit Suisse First Boston

sliced its earnings estimates for 2001 and 2002.