Shares of Hewlett-Packard Co. climbed Wednesday after the technology bellwether posted a profit for its latest quarter, reversing a year-ago loss thanks to cost cuts from the ongoing restructuring of its business.
HP's revenue also declined 3 percent, but that wasn't as bad as what Wall Street had expected. Its profit prediction for its fiscal first quarter bracketed analysts' outlook: Adjusted earnings of between 82 cents and 86 cents per share. Analysts were expecting 85 cents per share, according to a poll by FactSet. The company held on to its previous outlook for the fiscal year.
Jefferies analyst Peter Misek called the quarter's results "better than feared." He said that large, one-off PC and server deals helped the quarter's revenue and services and printing revenue was better than expected.
Like many PC makers, HP was slow to respond to the shift to mobile computing and has been feeling the effects of declining demand for personal computers. The company stumbled in recent years trying to catch up with the likes of Apple Inc. and Samsung Electronics. CEO Meg Whitman is trying to turn the company around, but this will be a long-term endeavor as the company cuts expenses and focuses on more profitable areas.
HP's shares rose $1.79, or 7.1 percent, to $26.88 in midday trading. The stock has ranged from $12.22 to $27.78 in the past 12 months.