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Storage Pushes HP's Profits Up

HP beat analyst estimates with its second quarter results last night, boosted by storage sales and a strong performance from the companys overseas businesses.

The vendor, which announced an agreement to buy outsourcing giant EDS for $13.9 billion and raised its full-year guidance last week, reported second quarter revenues of $28.3 billion, up 11 percent on the same period last year, beating analyst estimates of $28.1 billion.

HP’s earnings per share were 80 cents on net income of $2.8 billion, up from 65 cents and $2.3 billion in the same period last year. On a non-GAAP basis, the vendor’s earnings were 87 cents, up from 80 cents in the year-ago quarter, and above analyst estimates of 85 cents.

“Hewlett-Packard delivered a strong second quarter -- it was strong in almost every dimension we measure,” said the HP CEO Mark Hurd during a conference call last night, explaining that overseas sales accounted for 70 percent of HP’s total second quarter revenues.

In an increasingly tough economic climate, HP’s Americas revenues grew just 4 percent year-over-year, although sales in Europe, the Middle East, and Africa grew 16 percent over the same period, as did sales in the Asia-Pacific region.

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