Hewlett-Packard Profit Rises, Matches Guidance

AP HP headquarters.

Hewlett-Packard said a strong performance in China and improved profit margins in its services business helped drive quarterly earnings 14 percent higher.

The fiscal fourth quarter results released on Monday were in line with those the company preannounced two weeks ago, which topped Wall Street's estimates.

The world's biggest maker of personal computers earned $1.14 a share in the quarter, excluding one-time items, against a profit of $1.03 a share this time last year.

Sales for the most recent quarter reached $30.8 billion, down from $33.6 billion last year.

Analysts who follow HP expected the company to report a profit of $1.13 a share on sales of $30.357 billion.

"I think we’ve got an improved, sustainable cost structure, and as we continue to see, and hope, to see improved demand we think its going to bear good things for us," HP CEO Mark Hurd told CNBC Monday.

Shares of HP edged lower in extended trading Monday. Get after-hour quotes for Hewlett-Packard.

The stock finished the regular session up 1.92 percent at $51

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As it forecast earlier this month, HP expects fiscal 2010 earnings excluding items of $4.25 to $4.35 a share on revenue of $118 to $119 billion.