Hewlett-Packard Co., continuing to prosper during trying times for high-tech firms, surprised industry observers--and tickled investors--by posting stronger than expected second-quarter profits.
H-P, enjoying tremendous demand for its computer printers and other products, Tuesday reported a 7.4% rise in earnings for the second quarter.
The Palo Alto-based company earned $347 million, or $1.38 a share, for the three months ended April 30, compared with $323 million, or $1.27 a share, for the equivalent period last year.
Revenue--swollen by growth in all product areas--rose to a record $5.1 billion--up 22% from $4.2 billion in 1992's second quarter. It was the first quarter in which revenue topped $5 billion.
The news sent the company's stock up $5.12 1/2 a share. H-P was one of the most actively traded stocks Tuesday. It closed at $84.75 on the New York Stock Exchange.
"The market speaks," said Robert G. Herwick, an industry analyst with Hambrecht & Quist in San Francisco.
He and other analysts were surprised by the strong results. Most had predicted earnings of about $1.20 a share, though Herwick had estimated $1.35.