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Hewlett-Packard Shocks the Street; Shares Jump 7%

By Anders Bylund – Nov 26, 2013 at 4:52PM

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Analysts were expecting Hewlett-Packard to shrink both earnings and sales faster than it actually did. Investors are enjoying a 7% after-hours boost on the news.

Hewlett-Packard (HPQ -1.54%) just reported fourth-quarter results for its 2013 fiscal year. The technology giant met Wall Street's earnings estimates and exceeded revenue targets by 4%. HP shares are trading more than 7% higher in after-hours action. The stock price has more than doubled over the last year.

HP's non-GAAP earnings decreased 13% year over year to $1.01 per share, in line with analyst estimates. Net revenue decreased 3% to $29.1 billion, comfortably ahead of Wall Street's $27.9 billion target.

Earnings guidance for the next quarter was roughly in line with prevailing analyst projections, but the outlook for the 2014 fiscal year came in stronger than expected.

Hewlett-Packard CEO Meg Whitman said that "we still have much more work to do" to complete the company's five-year turnaround plan, but this quarter's results "demonstrate that HP's turnaround remains on track heading into fiscal 2014."

HP's software and enterprise services sales each saw 9% lower sales compared with the year-ago period. The only operating segment to deliver year-over-year revenue growth was the enterprise hardware group, driven by a 10% boost in server systems sales.

Hewlett-Packard's management will discuss the quarter in an analyst call at 5 p.m. Eastern time. You can listen along to that call by clicking here.

Fool contributor Anders Bylund has no position in any stocks mentioned. Check out Anders' bio and holdings or follow him on Twitter, LinkedIn, and Google+.

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