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HP Says Sales, Profits Increased in Second Quarter

HP said revenue grew 11% year over year to $28.3 billion, while earnings per share rose 23% to 80 cents.

Amid the buzz surrounding its pending $13.9 billion acquisition of outsourcer EDS, Hewlett-Packard on Tuesday reported solid gains in sales and earnings for its second quarter.

Releasing what it called preliminary results for the period, HP said revenue grew 11% year over year to $28.3 billion, while earnings per share rose 23% to 80 cents. Excluding one-time items, per-share earnings were 87 cents -- 4 cents higher than the 83 cents predicted by the majority of Wall Street analysts.

The results were driven by "solid performance across HP's business segments and strong cash flow from operations," the company said in a statement.

HP said it expects to report revenue of between $27.3 billion and $27.4 billion in the third quarter and earnings per share of between 76 and 77 cents.

For its full year 2008, HP said it's expecting revenue of between $114.2 billion and $114.4 billion, up from its previous forecast of between $113.5 billion and $114 billion.

It's also expecting 2008 earnings per share to come in at between $3.30 and $3.34, up from previous guidance of between $3.26 to $3.30.

HP said it will report full results for the second quarter in a week. It said it released the preliminary number as part of its effort to inform investors about its plan to acquire EDS for $13.9 billion.

HP said it would create a new business unit that will house EDS's operations and will be led by current EDS CEO Ron Rittenmeyer. Rittenmeyer will report directly to HP CEO Mark Hurd. The new unit will go to market under the name "EDS -- an HP company."

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