Hewlett-Packard C. raised its forecast for second-quarter revenue and earnings ahead of Wall Street targets yesterday, citing strength in its personal computer and server businesses and sending shares up as much as 2.7 per cent.
The world's biggest maker of personal computers and printers said it now expects to post revenue of $25.50 billion to $25.55 billion in the second quarter, which is about $1 billion more than it had previously forecast and well ahead of revenue in the period a year ago.
HP forecast adjusted earnings of 69 to 70 cents per share for the second quarter - up from its previous estimate of 63 to 64 cents. It also raised its forecast for net earnings per share to 64 to 65 cents from its previous estimate of 57 to 58 cents. The per-share figures will be helped by buybacks that reduced the amount of outstanding stock.
Shares of the company were up 95 cents or 2.2 per cent to $44.75 after the updated forecast, which HP issued after inadvertently releasing some financial data. The stock had hit a fresh 12-month high of $44.97 earlier in the session. HP has been taking market share from longtime rival Dell, which has stumbled in recent quarters. HP's PC business, includes desktop PCs, workstations and notebook computers.