UPDATE 3-HP results top Street despite stronger dollar

(Adds analyst comment, background, updates market action)

By Robert MacMillan and Eric Auchard

SAN FRANCISCO, Aug 19 (Reuters) - Hewlett-Packard Co (HPQ.N) results beat Wall Street targets as net profit rose 14 percent, subduing fears that slowing economies and a stronger dollar would weaken the world's biggest computer and printer maker and its rivals.

Shares rose 2.8 percent in after-hours trading on Tuesday after HP posted solid fiscal third-quarter international sales and forecast fourth-quarter earnings ahead of expectations.

Signs that weakness in the U.S. economy is spreading have unnerved investors and Wall Street over the possibility that technology customers would cut budgets and trim tech companies' profits in the process.

"The latest round of results means big-cap information technology companies are going to make it through the rest of the year," said Cowen & Co analyst Louis Miscioscia.

Results in the profitable printer division were not as rosy, but analysts were generally positive on the quarterly report.

HP reported net income for the quarter ending July 31 of $2.03 billion, or 80 cents a share. Excluding items, HP reported profit of 86 cents a share, ahead of the average analyst expectation of 84 cents a share.

Revenue rose 10.5 percent to $28.0 billion, or roughly 2 percent ahead of Wall Street's average expectations. Without the benefit of international currency translation, revenue grew only half that rate at 4.7 percent.

The Palo Alto, California-based company forecast fiscal fourth-quarter profit, excluding items, of $1.01 to $1.03 a share, ahead of the average analyst view of $1. The company forecast revenue of $30.2 billion to $30.3 billion, slightly behind the average forecast of $30.4 billion.

"They're going to obviously see some impact from the rising dollar. This is going to influence their overseas revenue and will have some impact on their bottom line," said William Rutherford, president of Rutherford Investment Management in Portland, Oregon.

Revenue from outside the United States accounted for 68 percent of the total. Adjusted for currency exchange rates, Europe, Middle East and Africa revenue rose 5 percent, and Asia Pacific revenue rose 8 percent. Revenue in the Americas rose 3 percent.

"This pushes out the wall of worry for tech investors until another 90 days," Miscioscia said of HP's results and recent reports from other major major information technology provides such as IBM (IBM.N) and Cisco Systems Inc (CSCO.O). Next week, Dell (DELL.O) is the last major computer maker to report this quarter but results are expected to be solid.

HP and other PC makers have been depending on strong overseas growth as U.S. performance has lagged because of wider economic troubles.

European technology spending has been "more of a mixed bag," Hurd said, but he added that the company has seen some surprising growth in some markets in the region.

Revenue in the personal systems group rose 15 percent to $10.3 billion. Notebook revenue grew 26 percent from last year, while desktop revenue rose 6 percent.