Monday November 24, 09:57 PM
CORRECTED-UPDATE 1-HP profit growth driven by EDS, cost cuts
SAN FRANCISCO, Nov 24 (Reuters) - Hewlett-Packard Co posted a higher quarterly profit on Monday, helped by cost cuts and its acquisition of Electronic Data Systems (NYSE: EDS - news)
, which boosted revenue from computer services.
The results, and HP's forecasts for fiscal 2009, matched preliminary figures that the No. 1 maker of personal computers issued on Nov. 18. The preliminary report had topped Wall Street expectations and sent HP shares soaring 14 percent that day.
Net profit for the fiscal fourth quarter ended Oct. 31 was $2.11 billion, or 84 cents per share, compared with $2.17 billion, or 81 cents per share, a year earlier. Profit per share excluding items, such as acquisition charges, was $1.03.
Fourth-quarter revenue rose 19 percent to $33.6 billion, or an increase of 16 percent when adjusted for currency effects. Excluding EDS, revenue growth would have been 5 percent.
HP's broad businesses, which include services, software, computers, printers and ink, has made it less vulnerable to the economic downturn than companies focused mainly on PCs. Rival PC maker Dell Inc (NASDAQ: DELL - news) did better than expected in the October quarter, mostly due to an aggressive cost cuts.
HP shares, which lost about one-third of their value from September to mid-November, have gained about 20 percent since the strong preliminary earnings report. The stock ticked lower to $35.40 in after-hours trading, from its close of $35.70.
(Reporting by David Lawsky; editing by Richard Chang) Keywords: HEWLETTPACKARD/
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