Hewlett-Packard has reported strong sales and earnings in its first fiscal quarter.

Hewlett-Packard (HP), one of the world’s largest personal computer and printer makers, has reported strong sales and earnings in its first fiscal quarter.

HP announced on Tuesday that its net revenue rose 13% to $28.5 billion (£14bn) in the quarter ending in January, ahead of the $27.6bn that analysts were expecting.

The company earned $2.1bn, or 80 cents per share, up 38% from a year ago and excluding certain one-time items, the company reported a profit of 86 cents per share, well ahead of analysts’ forecasts of 81 cents per share.
HP’s strong performance is a sign that the technology giant is gaining market share against key rivals and that its cost cutting is paying dividends.

HP Chairman and Chief Executive Officer, Mark Hurd, said: “We are raising our guidance yet again, reflecting our confidence in anticipated cost reductions and share gains in key markets.

“We added more than 2,000 sales positions in the past year through acquisitions and hiring. HP remains well positioned for profitable growth as we continue to focus on our numerous cost initiatives and improve our market coverage.”

HP also issued revenue and profit guidance for its second quarter and full fiscal year, again higher than analysts’ expectations. It reported that it expects second-quarter sales to be in the range of $27.7bn to $27.9bn, and for the full year, revenue should be between $113.5bn and $114bn.

As for earnings, HP said it expects profits, excluding charges, of 83 cents to 84 cents a share in the second quarter, slightly higher than the 82 cents per share that analysts were predicting. And the company said for the full year, profits should come in at a range of $3.50 to $3.54 a share, much higher than Wall Street’s target of $3.36 per share.

Shares in HP rose by almost 6% in after-hours trading on Tuesday.