Hewlett-Packard Earnings Disappoint

Hewlett-Packard Co.’s second-quarter profit rose 25 percent, but investors were disappointed by rising costs that eroded the company’s margins.

HP’s stock dropped nearly 9 percent after the company reported earnings below analysts’ expectations, falling $8.50 a share to close at $105.25 on the New York Stock Exchange.

HP, the nation’s second-largest computer company, earned $723 million, or $1.37 cents a share, for the three months ending April 30, vs. $577 million, or $1.10 a share, for the same period last year.

Margins fell to 34.2 from 35.5 in the previous quarter and 37.3 a year ago.