Hewlett-Packard Profit Rises on Cost-Cutting, Higher Revenue
HP bests Wall Street estimate of 49 cents per share by a nickel.
Hewlett-Packard Co.'s fiscal second-quarter profit rose 51 percent Tuesday as the printer and computer company benefited from cost cutting, stronger PC demand and a 5 percent jump in revenue.
For the three months ended April 30, HP earned $1.46 billion, or 51 cents a share, compared with $966 million, or 33 cents per share, in the same quarter last year. Sales rose to $22.6 billion from $21.6 billion in the second quarter of last year.
Excluding $97 million in amortization and other one-time expenses, HP earned $1.6 billion, or 54 cents per share.
On that basis, which does not comply with generally accepted accounting principles, HP beat Wall Street's expectations. Analysts were expecting the company to earn 49 cents a share on sales of $22.6 billion, according to a Thomson Financial survey.
HP shares rose 5 percent on the news. Earlier, they lost 52 cents to close at $31.11 on the New York Stock Exchange.