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Big Quarter for palmOne

TSC Staff

palmOne's(PLMO Quote) fourth-quarter earnings jumped 33% from a year ago, beating estimates thanks to brisk sales of its Treo wireless device. The company also raised revenue guidance.

palmOne earned $17.7 million, or 35 cents a share, in the quarter, compared with earnings of $13.3 million, or 27 cents a share, last year. Revenue rose 26% from a year ago to $335.8 million. Backing out items, the company earned $19.2 million, or 37 cents a share, in the most recent quarter.

Analysts had been forecasting pre-item earnings of 31 cents a share on sales of $332.3 million.

palmOne also said it expects to post pro forma earnings of 30 cents to 35 cents a share in the first quarter on revenue of $330 million to $335 million. Analysts forecast 31 cents a share on $314.1 million.

The stock rose $1.76, or 5.9%, to $26.70.

In the fourth quarter, palmOne said, carrier and channel sellers reported "very strong sell-through on Treo smartphones," a 250% increase over the year-ago quarter and a 57% rise from the third quarter.

The company said it had cash flow of $36.5 million from operations in the fourth quarter.