Hewlett-Packard Stock Soars on 64% Jump in Profit

Hewlett-Packard Co. stunned Wall Street on Thursday when it reported a 64% jump in first-quarter profit on strong, across-the-board gains in sales.

The results exceeded both HP’s and analysts’ expectations, and the computer company’s stock soared $10.50 to close at an all-time high of $115.875 on the New York Stock Exchange.

Palo Alto-based Hewlett-Packard is one of the nation’s biggest makers of computers, with products that range from notebook and desktop models to powerful machines for multiple users. It also is a leading maker of computer printers.

The company said it earned $602 million, or $2.30 a share, in the three months ended Jan. 31, compared to $368 million, or $1.42 a share, in the same period a year ago.

Analysts surveyed by Zack’s Investment Research had expected earnings of $1.69 a share.

Revenue rose 29%, to $7.3 billion from $5.6 billion. Sales and orders were up in all product lines. Sales of computers, HP’s biggest business, rose 32%, to $5.8 billion from $4.4 billion.

“Our order and revenue growth exceeded our expectations and was well balanced across businesses and geographies,” said Lewis E. Platt, HP’s chairman, president and chief executive.

The company has also been able to curb operating expenses, said Robert G. Herwick, president of Herwick Capital Management in San Francisco.

HP also announced a 2-for-1 stock split, payable April 13 to shareholders of record March 24, and a 33% increase in its quarterly common stock dividend, to 40 cents.

After the split, the dividend will be 20 cents per share.