HP surprised Wall Street by reporting earnings slightly higher than expectations. Sales for HP products were up in the third quarter. HP shares jumped more than 14 percent.
By: Mary Couchman
Published: Nov 19, 2008
Updated: Jul 2, 2009
Hewlett-Packard Company surprised investors on Tuesday after reporting earnings above Wall Street estimates. HP shares soared more than 14 percent after the earnings report was announced. Investors say HP products are winning market share from recurring revenue on services and printing supplies.
HP reported a net profit in the fiscal fourth quarter that ended October 31 at 84 cents per share. The profit is $1.03 excluding items such as restructuring and acquisition charges.
Financial analysts were predicting earnings of $1 per share.
While earnings were slightly above Wall Street estimates, fourth-quarter revenue rose 19 percent to $33.6 billion. The revenue is slightly up compared with the average analyst estimate of $33.1 billion.
HP is scheduled to post full results next Monday. The company did not detail which parts of its products were strong, but said it was benefiting from its global reach, diverse customer base and cost cuts.
The business technology company acquired Electronic Data Systems corp in the third quarter. The acquisition gave HP a revenue growth of 19 percent. However, HP said it would lay off 25,000 employees following its acquisition.
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