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Hewlett-Packard Company (NYSE: HPQ) reported higher quarterly profits after the bell today. Net income in the fiscal third quarter rose to 66 cents a share, compared to 48 cents in the same period a year ago. The average analyst estimate was for 66 cents per share. The company bested analysts estimates for its third quarter revenue, which came in it at $25.4 billion, compared to estimates for $24.1 billion. This quarterly profit rise amounted to the strongest sales growth in the past seven years at HPQ. HPQ and its competitors Dell Inc. (NASDAQ: DELL) and Apple Inc. (NASDAQ: AAPL) have all made it clear in their recent earnings releases that the sharp price declines in memory, disk drives, and microprocessors have aided their earnings tremendously.   

The company benefited from cost cuts, lower component prices for computers, and margin expansion throughout the company. Mark Hurd, CEO of Hewlett-Packard, said that these results show just how well the company is executing all of its businesses. The organizational efficiency at HPQ has been very impressive since Mr. Hurd took the helm in 2005. Hurd has helped the company cut costs by over $1.9 billion since 2005. PC sales growth came in at 29% in the period, stronger than the broader industry average. The sale of notebooks was largely the cause for this impressive gain in PC sales.

Hewlett-Packard is a company that most certainly has its act together right now. Mark Hurd has done a tremendous job in turning the company around and improving its efficiency through cost cutting and higher returns on investment. Case in point, the company reported 9% operating profit margins today, while in the same period a year ago that same figure was just 7.6%.

The company also guided analysts estimates higher for the next quarter. HPQ now expects to earn 80-81 cents per share next quarter. The street has an average estimate of 78 cents per share. The stock initially popped higher in after hours trading, up about 3% on this news, but has now settled back to a fractional gain.

Hewlett-Packard will likely be the story stock of the day tommorrow on Wall Street with its trading driving many other technology names.