Compaq Computer Corp should post solid fourth-quarter results, thanks in part to strong sales during the week of Thanksgiving. Credit Suisse First Boston says the company is on track to meet its estimate of $0.38, while Merrill Lynch & Co is looking for at least $0.35, with a possible slight upside surprise. CSFB analyst Michael Kwatinetz has raised his revenue projection for the quarter by $194m to $10.74bn. He’s also raised his 1999 earnings projections from $1.70 per share to $1.75 and predicts that the company will have its integration of Digital Equipment Corp completed by June. Along those lines, Merrill’s Steve Milunovich says that, strong sales aside, upside for the quarter would also come from lower SG&A expense – a result of Compaq quickly and cleanly continuing its lay-offs, with 5,000 more during the quarter. Compaq is seeing good demand in both Europe and North America, Milunovich says. He says Japan’s commercial business is a bit better, though Asia Pacific as a whole is still not showing any signs of recovery. Business in Latin America is said to be mixed.
