|
Compaq up on good news
|
 |
January 22, 1997: 1:11 p.m. ET
Compaq announced net income of $462 million for fourth quarter
|
HOUSTON (CNNfn) -- Shares of Compaq Computer Corp. posted healthy gains Wednesday afternoon on news of a 43 percent increase in fourth quarter earnings over the same period a year ago.
Shares had gained 6 to 84-1/2 on news that fourth quarter net income came in at $462 million. Earnings per share rose to $1.64 compared with $1.17 a year ago.
Compaq's worldwide quarterly sales grew 15 percent to $5.4 billion, compared with $4.7 billion in the fourth quarter of 1995.
Net income for 1996 was $1.3 billion, a 28 percent increase over 1995. Yearly earnings per share rose to $4.66, higher than last year's $3.74. For the year, sales grew 23 percent to $18.1 billion, compared with $14.8 billion in 1995.
Those results exclude a $241 million non-recurring, non-tax deductible charge associated with fourth-quarter technology acquisitions.
"These results reflect an excellent fourth quarter and outstanding year for Compaq. We're very pleased with the consistency of our financial progress, especially with the improvements in earnings and the growth of gross margins to 24.4 percent in the fourth quarter," said Eckhard Pfeiffer, Compaq's president and chief executive officer.
The company is predicting continued strong growth throughout 1997. It will continue to focus on high-growth segments of the industry such as professional workstations, a market segment that's expected to grow by more than 40 percent annually by the year 2000.
|
|
|
|
|
|
Compaq Online
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
