Hewlett-Packard beats forecasts sending shares up 7%

Hewlett-Packard’s fourth-quarter revenue beat expectations as rising sales from its key enterprise group helped offset a shrinking personal computer business, an optimistic sign that sent its shares rallying more than 7 per cent.

HP posted revenue of $29.1 billion, beating the $27.9 billion expected by analysts.

Revenue fell across most of HP’s business divisions except the enterprise group, whose sales edged up 2 per cent to $7.6 billion.

Sales from HP’s largest, PC-focused unit slipped 2 per cent to $8.58 billion while the printing division’s sales dipped 1 per cent to $6.04 billion.

Chief executive Meg Whitman, who took the helm of the world's largest PC maker more than a year ago, said last month she expects revenue to stabilize in 2014, with some areas of growth for the company.

With the help of job cuts and expansion into markets and areas with longer-term potential such as enterprise computing services, the chief executive is trying to reconfigure the Silicon Valley icon and return it to growth.

Shares in HP climbed to above $27 in extended trading, from a close of $25.09 on the New York Stock Exchange.