Hewlett-Packard topped Wall Street's revenue and earnings expectations in the first quarter of its 2007 fiscal year.

HP posted net income of $1.5 billion, or $0.55 a share, in the quarter ended 31 January, 2007, compared to $1.2 billion, or $0.42 a share in the year ago quarter, the company said on Tuesday.

Excluding $279 million in adjustments on an after-tax basis, net income for HP was $1.8 billion, or $0.65 a share, exceeding the consensus forecast for $0.62 per share from analysts polled by Thomson Financial.

HP described the expenses as related primarily to the amortisation of purchased intangibles and in process research and development charges related to acquisitions. It also cited stock-based compensation expense in both current and prior years.

Revenue came in at $25.1 billion, up 11 per cent from last year's first quarter and above the $24.27 billion analyst forecast.

Growth came from HP's personal systems group, which is desktop and laptop computers for consumers, with a 17 per cent year-over-year revenue growth, and from imaging and printing, with 7 per cent revenue growth.

HP topped rival Dell as the leading seller of personal computers in 2006, according to IDC. At financially troubled Dell, former CEO and chairman Michael Dell returned to the CEO office, following the ouster of Kevin Rollins last month.

"HP delivered a strong first quarter, with improved margins and solid revenue growth across our businesses," said Mark Hurd, HP chairman and chief executive, in a statement.