HP profit climbs 28 percent as company raises outlook again

Printer, industry-standard server and PC businesses report strong growth

Hewlett-Packard's first-quarter profit increased by 28 percent from a year earlier as growth returned to some of its core businesses, prompting the company to raise its forecast for the fiscal year.

HP's profit for the quarter ended Jan. 31 was US$2.3 billion, up from $1.9 billion in the same quarter last year. Revenue increased by 8 percent to $31.2 billion, HP announced Wednesday.

The company's printer, industry-standard server and PC businesses all reported revenue growth, HP said -- a turnaround from last quarter, when sales declined in almost all of its main business segments. Revenue from HP's giant services segment decreased by 1 percent, however, to $8.7 billion.

"HP is well-positioned to outperform the market," HP Chairman and CEO Mark Hurd said in a statement. "The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook."

Excluding one-time items, HP reported pro forma earnings of $1.10 per share, up from $0.93 a year earlier. Analysts had expected pro forma earnings of $1.06 per share on revenue of $30.01 billion, according to a poll by Thomson Reuters.

The results are another sign that parts of the tech industry are emerging from the recession. Last month IBM reported its first quarterly revenue increase in more than a year, and said profits were up 10 percent from a year earlier.

HP had indicated that conditions were improving late last year, when it raised its revenue target slightly for fiscal 2010, to between $118 billion and $119 billion.

On Wednesday it raised the outlook again, this time by a larger amount. It now expects full year revenue for fiscal 2010 of between $121.5 billion and $122.5 billion, the company said.

Tags HPfinancial resultsrevenue

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?