HSAN JOSE, Calif. – Hewlett-Packard Co.’s profit swelled 25 percent in the latest quarter because of cost-cutting and a stronger showing from its personal-computer division.
Revenue was up in most of the technology company’s major divisions and HP raised its 2010 outlook, citing “accelerating market momentum.”The numbers show that technology spending by corporations is creaking back to life. HP is a bellwether because it is the world’s biggest maker of PCs and printers. And HP’s latest results are the first from a major tech company to include the full month of January.
HP’s services division stumbled, however. Revenue fell even as the division got more profitable, a difference likely explained by CEO Mark Hurd’s aggressive cost cuts to that business. Services represent HP’s latest challenge against rival IBM Corp. and are a cornerstone of a major makeover for HP.
HP said after the market closed Wednesday that its net income was $2.3 billion, or 96 cents per share, for the three months ended Jan. 31. In the same period last year, it earned $1.9 billion, or 75 cents per share.
Excluding one-time items, HP said it would have earned $1.10 per share. That beat the average estimate of $1.06 per share, according to analysts surveyed by Thomson Reuters.
Revenue jumped 8 percent to $31.2 billion, also topping analyst forecasts for $30.0 billion.
HP’s 2010 forecast now calls for $121.5 billion to $122.5 billion in revenue, exceeding the $120 billion analysts were expecting.
Net income is expected to be $3.79 per share to $3.86 per share, or $4.37 per share to $4.44 per share excluding charges. Analysts were expecting $4.37 per share, excluding charges.HP shares rose 50 cents, 1 percent, to $50.65 in after-hours trading.
Via: news.yahoo.com
Tags: CEO mark hurds, Hewlett Packard, HP, IBM corporation