Sales of notebook computers and software have helped drive up HP's second-quarter net income to $US1.5 billion from $1 billion in the same period of last year.
HP recorded $US0.51 earnings per share on revenue of $US22.6 billion in the quarter that ended April 30, up from $US0.33 a share on $US21.6 billion revenue in last year's second quarter. Tuesday's financial report beat analyst forecasts of $US0.49 per share on revenue of $US22.6 billion from Thomson Financial.
Excluding certain items, HP had an operating profit of $US1.8 billion, or $US0.54 a share, up from $US1.3 billion, or $US0.37 a share, in the same quarter last year.
The company estimates its third-quarter revenue will be about $US21.8 billion, and about $US91 billion for its full fiscal year, in line with current analyst consensus expectations.
HP's notebook revenue rose 27 per cent over the second quarter of last year, with desktop revenue up 1 per cent. The Personal Systems Group, which includes notebooks and desktops, had operating profit of $US248 million, up from $US147 million in the same period of last year. Software revenue rose 20 per cent year-over-year, to $US330 million.
HP's earnings come on the heels of a warning from PC rival, Dell, last week. Dell lowered its first-quarter forecast to revenue of $US14.2 billion, compared to its earlier forecast of $US14.2 billion to $US14.6 billion. Earnings per share are now expected to be $US0.33, compared to the earlier forecast of $US0.36 to $US0.38. Dell will release its quarterly earnings on Thursday. Although Dell still ships the most PCs worldwide, it lost market share to HP this year, according to IDC analysts.