Shares rise as HP results beat expectations

Hewlett-Packard shares jumped as it posted expectation-beating results yesterday.

The figures were based on strong server and personal computer sales and a resurgence in its printing business. The company has raised its full-year outlook.

Shares in the US technology company climbed 1.1 per cent in after-hours trading yesterday. For 2010, HP forecast earnings of $4.37 (£2.79) to $4.44 a share on revenue of $121.5bn to $122.5bn, up from its previous estimate of $4.25 to $4.35 a share on $118bn to $119bn.

Its profitable printing business rebounded from a slump during the recession, with sales rising four per cent in the fiscal first quarter, and supplies revenue growing one per cent.

Strength also came from HP’s server business, which is benefiting from an improved environment for corporate technology spending.

HP generates more than three-fifths of its revenue internationally, and the company said sales from fast-growing emerging countries Brazil, Russia, India and China leapt 41 per cent from a year earlier. HP reported net income of $2.3bn, or 96 cents a share, in its fiscal first quarte.