Hewlett-Packard posts 'pretty darn strong' earnings

SAN FRANCISCO -- The No. 1 PC maker reported revenue of $28.5 billion in the quarter ended Jan. 31. The numbers rose more than 13% from $25.1 billion a year ago and beat Wall Street estimates.

Despite fears of a pullback in U.S. tech spending, sales in the Americas rose a solid 8%. U.S. consumer sales "were probably not quite as robust as we've seen in the past," CEO Mark Hurd said. But, overall, HP's results were "pretty darn strong," Hurd said.

They're expected to remain so. In the current quarter, HP forecast revenue of $27.7 billion to $27.9 billion.

The news, released after market close, sent shares up 5% in after-hours trading.

Hurd warned that his company may not be a perfect economic indicator, because it is in the middle of a multiyear restructuring that began when he joined HP in 2005. Changes include the hiring of 2,000 additional sales staffers in the past year and the consolidation of operations to cut costs.

Such reductions helped HP report net income of $2.1 billion, or 80 cents a share, up from $1.6 billion, or 55 cents a share, a year ago.

Some of the strongest results came from HP's PC division, which posted a 24% increase in revenue. Operating profit was $628 million, an impressive number for a unit that often lost money in the past.

HP warned that the division probably can't keep growing at that rate. Higher component costs in the current quarter are expected to cut into profit.