Hewlett-Packard reported underlying quarterly profit growth of 27% Wednesday, lifted by broad cost cutting and strength in its personal computer and printer businesses.
Revenue for HP's fiscal second quarter rose 13% to $25.5 billion, and shares of the world's biggest maker of PCs and printers rose slightly in extended trade.
Chief Executive Mark Hurd, who has led a turnaround at the company since his arrival just over two years ago, said the revenue growth was its strongest since 2000 and HP continued to gain market share in a number of markets.
"PCs and servers, as expected, were leading the charge," said Brent Bracelin, an analyst at Pacific Crest Securities.
Net income was $1.78 billion, or 65 cents per share, compared with the year-ago quarter's $1.90 billion, or 66 cents per share, including a tax settlement gain of 15 cents.
Excluding items, HP had a per-share profit of 70 cents in the just-reported quarter. Analysts polled by Thomson First Call expected earnings of 69 cents a share.
HP last week lifted its prior profit forecast, following the inadvertent disclosure of financial data via e-mail to a single outside party. It said May 8 it expected to report net earnings per share of 64 cents to 65 cents, and a profit before items of 69 cents to 70 cents.
HP also left its revenue forecast unchanged and slightly narrowed its forecast for earnings per share before items for the third quarter. HP also said last week third-quarter results would top Wall Street estimates at the time.