The company said it has raised its earnings expectations for the year to $0.32 per share, a $0.07 increase from what analysts expected. Compaq believes that the improvements in operations that helped it beat expectations in the fourth quarter will also lead to growth in earnings per share in 2002, according to Jeff Clarke, Compaq's chief financial officer.
For the fourth quarter, which ended 31 December 2001, Compaq reported net income of $92m (£65m), or $0.05 per share on revenue of $8.5bn (£6.0bn). While the numbers showed a sequential increase in revenue of 14%, it still dropped 26% year-on-year.
Compaq expects revenue to reach $34 billion for fiscal 2002, helped by factors including increased demand for enterprise storage and industry standard servers.