COMPAQ <CPQ> EXPECTS HIGHER FIRST QUARTER NET
Compaq Computer Corp said it expects
sales and earnings for the first quarter of 1987 to be higher
than analysts expectations due to strong demand for its
products.
    Rod Canion, president and chief executive officer of
Compaq, said he expects sales of over 200 mln dlrs for the
period ending March 31, above analysts' estimates of 165-185
mln dlrs. He added that earnings per share would exceed
analysts estimates of as high as 42 cts a share.
    Compaq reported earnings of 8.3 mln dlrs, or 30 cts a
share, and sales of 144 mln dlrs for the first quarter 1986.
    The company said demand for its DESKPRO 386, PORTABLE III
and the new COMPAQ DESKPRO 286 will contribute to the sales
increase.
    "The initial demand for the recently introduced COMPAQ
PORTABLE III and the new models of the COMPAQ DESKPRO 286
exceeds that of any other Compaq personal computers," Canion
said. "We saw continued demand for our personal computers
across the quarter, with March (1987) being a particularly
strong month.
 Reuter
