Compaq: us too less profits than expected
Compaq is one of the new members of the coveted "lower than expected profits" club. The world's largest computer manufacturer in fact will close the current quarter with earnings 10% lower than expected. The same company announced yesterday fearing a turnover from 11.2 to 11.4 million dollars which means 28 or 30 cents per share against the 36 expected. "It is clear that the market is slowing down – said Michael Capellas, CEO of Compaq – even if we will still have a good year overall" .Compaq had been in the analysts' sights for a few weeks. According to some of them, Compaq, with Apple, could have been the reality that more than others could have suffered from the cooling of the consumer segment. The situation would be particularly worrying because the quarter was one of the most productive for those selling to home users and Compaq had a difficult warehouse situation with ten weeks of inventory already at the beginning of November. This could force marketing managers to promote actions for the liquidation of stocks by lowering prices with repercussions on the entire sector. A perspective that also appeared in the words of Capellas who announced "falling prices that will affect not only the consumer sector but also the Pro and server sector". Yesterday Compaq had closed the day in progress at the Nasdaq market. After the announcement in closed markets in the post trade, its prices fell below yesterday's prices but without suffering dramatic shocks.