HP net income jumps 28 percent

SAN FRANCISCO (AP) - Hewlett-Packard Co.'s net income jumped 28 percent in the latest quarter as stronger demand for computers is helping to heal a battered technology industry.

The company also raised its 2010 forecast.

The results mark a continued acceleration in profit at the world's No. 1 maker of personal computers and printers. Although HP had been making money even during the height of the recession, its net income has been getting smaller each quarter. But for three straight quarters now, net income has been growing.

The company earned $2.2 billion, or 91 cents per share, in the three months ended April 30, its fiscal second quarter. It earned $1.7 billion, or 71 cents per share, in the same period last year.

Excluding special items, it earned $1.09 per share. Analysts expected $1.05 per share on that basis.

Revenue rose 13 percent to $30.8 billion, better than the $29.8 billion that analysts polled by Thomson Reuters expected. In the same quarter a year earlier, revenue was $27.4 billion.

For 2010, HP is now predicting profit of $4.45 to $4.50 per share, excluding special items. That's higher than its previous forecast of $4.37 to $4.44 per share. The higher outlook excludes 69 cents per share in one-time costs, largely related to HP's restructuring and acquisitions.

When those costs are included, HP now expects its 2010 net income to be $3.76 to $3.81 per share, which is down from its earlier estimate.

The company has been on a buying binge recently as its dependence on PCs wanes.

HP, which is based in Palo Alto, Calif., said last month that it's buying smart-phone pioneer Palm Inc. for $1.4 billion in a bid to beef up HP's very small mobile phone business. HP's $2.7 billion acquisition of 3Com Corp. makes HP a stronger player in computer networking.

Shares jumped 84 cents, or 1.8 percent, to $47.63 in extended trading after the release of results Tuesday. Earlier, it closed down 73 cents, or 1.5 percent, at $46.79.