Hewlett-Packard Co. reported a stronger net profit for the fiscal third quarter on Thursday, exceeding Wall Street expectations.
The worldâ€™s second largest computer maker said net income rose from $73 million to $1.38 billion. The earnings for the quarter were 48 cents per share compared to 3 cents per share a year ago.
The company said the earnings jump was boosted by a stronger demand for its PCs and printers, which drove sales to rise by 5.4 percent to reach $21.9 billion. The consensus on Wall Street was that the California-based firm would earn $1.37 billion on a total revenue of $21.8 billion, according to a Thomson Financial Survey.
â€œHP delivered another solid quarter with strong revenue growth, improved margins and healthy cash flow, said Mark Hurd, HP chief executive officer and president. â€œWe gained share without sacrificing margins and continue to execute well against our long-term plan.â€
During Hurdâ€™s tenure, which began in April of this year, HP began a massive restructuring program to cut costs and compete more effectively with Dell. Since it started, PC shipments for the firm in the U.S. were 16 percent higher compared to Dell in the second quarter, according to research firm IDC.
In a conference call, Hurd said that a plan to eliminate 15,300 jobs was two-thirds complete. He added that the PC market would remain competitive where HP didn't see any â€œunique or extraordinary differenceâ€ in pricing.
Daniel J. Renouard gave HP an Outperform rating, saying the company would achieve significant operating efficiency gains, better margins and strong earnings growth during the next several years.