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Thinkpad (AXcess News) Houston, TX - Hewlett-Packard Co. (NYSE: HPQ) shares rose $2.25 to $33.92, a 7 percent increase and their highest level in more than four years on strong notebook computer sales and cost-cutting measures that increased earnings 30 percent in the first-quarter.
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Microsoft Mark Hurd, who replaced Carly Fiona as CEO last March, had implemented cost-cutting measures and went about reorganizing the nation's no. 2 computer maker's technology divisions beating even the company's own earnings estimate for the first-quarter.
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Laptop Computers "Growth was balanced across most of our businesses and geographies, cash flow was strong and we were disciplined in controlling costs," Hurd said.
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Laptop Computer The Palo Alto, California-based company beat its forecast for a third straight quarter.
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Desktop Computer Net income rose to $1.23 billion, or 42 cents a share in the quarter ended Jan. 31, from $943 million, or 32 cents, a year earlier. Sales rose 5.6 percent to $22.7 billion.
Notebooks Profit including stock-based compensation costs and excluding expenses from job cuts was 48 cents a share. Hewlett-Packard had predicted profit of 42 cents to 44 cents.
Lenovo Analysts estimated that HP would earn 44 cents per share on sales of $22.55 billion in the first-quarter.
Hard Drive Hewlett-Packard's PC profit doubled to $293 million on an 8.4 percent increase in sales and the profit margin widened to 3.9 percent from 2.1 percent a year earlier.
HP's PC shipments rose 16 percent last quarter, with sales of notebooks outpacing desktop machines. Notebook sales rose 26 percent, while desktop revenue increased 1 percent.
