NEW YORK (CNN/Money) - Hewlett-Packard on Tuesday reported higher sales and profits for the latest quarter, three months after a warning by the tech giant prompted analysts to lower their estimates.

The news sent HP (Research) stock up 8 percent in after-hours trading after it rose 1.3 percent in regular trading.

Palo Alto, Calif.-based HP, which sells personal computers, printers and other products and services, said net earnings rose 27 percent to $1.1 billion, or 37 cents a share, in its fiscal fourth quarter ended last month, up from $862 million, or 28 cents a share, a year earlier.

Excluding one-time charges, earnings rose 14 percent to 41 cents a share, up from 36 cents a year ago. Analysts had forecast average earnings excluding one-time charges of 37 cents a share, according to First Call.

Sales rose 8 percent, to $21.4 billion, from a year ago.

HP was the last of the tech bellwethers to report quarterly earnings this season. The five other industry giants -- Microsoft, International Business Machines (IBM), Cisco Systems, Dell and Intel -- all either met or beat Wall Street forecasts on signs that business technology spending is picking up even as consumer buys have shown some weakness.

Still, there's evidence that the tech industry faces big challenges.

A Goldman Sachs survey released Tuesday confirmed that tech spending growth for 2004 is likely to be 3.4%, higher than the previous forecast. Citing a lack of urgency on the part of chief information officers to upgrade, Goldman Sachs predicted that tech spending would increase at a "still uninspiring" 2.5 percent in 2005.

HP CEO Carly Fiorina said during an analyst call late Tuesday that the company's sales of storage, servers and software to large corporations -- its "enterprise" business -- strengthened in the fourth-quarter but that consumer spending was "sort of treading water."

She also indicated that consumer spending remains sluggish heading into the key holiday period. "At this juncture what we're seeing is improvement in the enterprise market and a so-so consumer market," said Fiorina. "I wouldn't call it weak, but I wouldn't call it spectacular."

A year ago HP reported that the exact opposite: the enterprise market was weaker while consumer spending was strong.

For HP, a fourth-quarter operating profit of $107 million in its enterprise business was crucial.

In this summer's third-quarter, the enterprise unit reported a surprising loss of $208 million on sales of $3.4 billion. That loss, which sent HP shares down sharply, triggered a management shakeup and caused the company to lower its sales and profits guidance for the fourth-quarter.

Hewlett-Packard shares are down for the year, while S&P 500, Dell and IBM are up

HP's shares have since recovered, due in part to the company's large stock buyback in the quarter. But HP stock is still down about 15 percent for the year, less than Cisco and Intel. Meanwhile, shares in Dell (Research), IBM (Research) and Microsoft (Research) are up for the year.

HP's better-than-expected results -- given its dampened outlook just three months ago -- were key for Fiorina and her right-hand deputies.

Under Fiorina's leadership, HP has been trying to fashion itself into a one-stop shop for consumer and corporate technology needs. But it's faced stiff competition, from low-cost personal computer makers like Dell on the one hand and high-end corporate services providers like IBM on the other.

HP's 2002 acquisition of Compaq Computer, the biggest in the high-tech industry's history, has been widely criticized by analysts -- as has the company's inconsistent earnings record.

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The fourth-quarter results should help Fiorina as she works to silence critics.

"I think the overall results are pleasing," said Ali Irani, an analyst with CIBC World Markets Corp. "Obviously, investors have a skeptical view to the on-again, off-again performance of HP. In our view, the last (third) quarter really was kind of a blip."

Irani does not own HP shares and said CIBC has not recently done any banking business for the company.

Including the enterprise business, all four of HP's core business lines showed strong growth in quarterly revenues. And, expect for a small loss of $5 million in its software division, all businesses reported an operating profit. Among the key results:

• Printing and imaging, by far the company's most profitable business, posted record sales of $6.5 billion, a five percent hike over last year's quarter. Operating income was $1.1 billion, another quarterly record.
• Sales of personal computers, handheld computers and other electronic devices also reached a record $6.5 billion, up nine percent from last year. At $78 million, operating income was the strongest it's been since 2000.
• Services, which includes customer support and technology consulting, reported a 13 percent year-over-year boost in sales, to a record $3.7 billion. Operating profit was $367 million.

Looking ahead, HP said that revenues in the first half of 2005 should range between $41.8 billion and $42.3 billion, or about $500 million more than the current Wall Street consensus.

The company said it sees earnings before items of 72 cents to 74 cents a share, a range that is in line and slightly ahead of average analyst estimates.

CFO Bob Wayman acknowledged that the improved sales outlook was due primarily to currency benefits from the weak U.S. dollar but also said it was based on the solid fourth-quarter performance.