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Hewlett-Packard 1Q earnings, revenue top views

PALO ALTO, Calif. — Hewlett-Packard Co. reported first-quarter earnings and revenue that topped Wall Street’s forecasts, mainly on the surprising strength of personal computer sales to businesses. But HP may have benefited from a one-time bump as companies upgraded to Windows 7 and bought new machines before Microsoft stops supporting Windows XP in April.

HP’s second-quarter outlook was slightly below forecasts, while its full-year outlook was mostly in line.

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Net income in the quarter through Jan. 31 rose 16 percent to $1.43 billion, or 74 cents per share, from $1.23 billion, or 63 cents per share, a year earlier.

Excluding restructuring and other charges, adjusted earnings came to 90 cents per share. Analysts polled by FactSet expected 85 cents.

Revenue declined 1 percent to $28.15 billion, but was flat excluding currency effects. Analysts expected $27.20 billion.

Personal computer sales rose 4 percent to $8.53 billion, bucking a global decline.

The research firm Gartner Inc. said last month that global PC shipments fell 7 percent in the final three months of 2013 as consumers bought more tablets and smartphones. International Data Corp. put the drop at 6 percent.

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HP expects second-quarter adjusted earnings of 85 to 89 cents per share. The midpoint of that range is below the 89 cents analysts were forecasting. It expects full-year adjusted earnings of $3.60 to $3.75 per share, with the midpoint slightly above the $3.66 analysts were expecting.

The company’s shares rose 6 cents to $30.25 in after-hours trading following the release of results, after closing up 74 cents, or 2.5 percent, at $30.19 in the regular session.

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