Analysts aren't finished knocking down the PC sector.
today cut its revenue and earnings forecasts for
, because of "a clearly slowing consumer market for PCs, the likelihood of increased pricing pressure from Dell" and "fears related to economic uncertainty."
Analyst Steve Fortuna said he was cutting his full-year 2000 earnings estimate to 97 cents a share from $1.03, compared with earnings of 32 cents a share in fiscal 1999. He also cut his 2001 earnings estimate to $1.05 from $1.40, which he said was "the lowest on the Street by an unusually wide margin." According to
First Call/Thomson Financial
, 22 analysts expect earnings of $1.04 a share in 2000 and $1.46 a share in 2001.
His report said he expects Compaq's fourth quarter to be "more at risk from a sales standpoint than from an earnings standpoint." He also said he believes the company will "use its next public forum to reset growth targets to a significantly lower level."
For 2001, Fortuna said he was cutting his revenue forecast to $45.68 billion from $48.24 billion. Analysts estimate revenue in 2000 to be $43.2 billion and revenue in 2001 of $48.6 billion, compared with $38.5 billion in 1999.
Merrill Lynch is maintaining its accumulate rating on Compaq, with a $22 price target, which the firm said was based on its new 2002 earnings forecast of $1.30.
Shares of Compaq recently gained 56 cents, or 2.9%, to $19.91 in trading on the
New York Stock Exchange