HP (NYSE:HPQ) Falters On Revenue Growth, Transformation a Failure?

Hewlett-Packard's earnings climbed 16 percent as the company benefited from expanded efforts to market technology to businesses. Even so, its revenue growth fell short of Wall Street's estimates, generating questions about the momentum of the company's gigantic transformation.

HP reported after the market closed Tuesday that its net income was $2.61 billion, or $1.17 a share, versus $2.25 billion, or 93 cents a share, a year ago. Excluding items, HP earned $1.36 a share. That was ahead of analysts' expectation of $1.29 a share, according to FactSet.

Revenue increased 4 percent to $32.30 billion. That growth wasn't as strong as analysts expected. Analysts projected $32.96 billion.

Hewlett Packard attempted to allay concerns by boosting its full-year profit outlook to a range of $5.20 to $5.28 a share, excluding items. Analysts were looking for $5.23.

The company was down by about 10 percent in after hours trading.