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After Hours Action: Hewlett Packard

In extended trade shares of Hewlett-Packard popped about 3% after the company reported better than expected earnings due to solid demand for personal computers and servers -- and a resurgence in its printing business.

Also H-P raised its full-year outlook.

Looking at the numbers, the firm said it earned $1.09 a share excluding one-time items in the second quarter, up from 86 cents a share this time last year. Analysts expected a profit of $1.05 a share.

HP's sales climbed to $30.85 billion, against $27.351 billion last year.

"It was just a good strong quarter, broad-based across regions, across all businesses, just quite strong," Mark Hurd, HP's chief executive officer, told CNBC.

Turning attention to the Palm acquisition, CNBC’s Jim Goldman explains HP considers Palm a strategic acquisition for its web operating system. According to Mark Hurd "this is not an acquisition about smartphones."

And Goldman adds "Microsoft continues to be an important partner to Hewlett-Packard going forward."

What’s the trade?

They raised full year guidance, explains Karen Finerman. And at under 11 times earnings I find valuations extremely attractive. I’m an owner, she says.

If you’re an investor I think you can layer into this name, adds Guy Adami, but if you’re a trader I’d wait.

I agree that if you have a longer time horizon, it's okay to buy right here, says Tim Seymour.


> For more coverage of Hewlett Packard earnings click here




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Trader disclosure: On May 18, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (EEM); Terranova Owns (SWN); Finerman's Firm Is Short (IJR), (MDY), (IWM), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (JPM), (JPM) Call; Finerman Owns (JPM); Finerman's Firm Owns (KFT); Finerman's Firm Owns (SKS); Finerman's Firm And Finerman Own (TJX); Finerman's Firm Owns (WFC) Preferredl; Finerman's Firm Owns (WMT); Najarian Owns (AMD) Calls; Najarian Owns (C) Calls; Najarian Owns (HPQ), Is Long (HPQ) June Call, Is Short (HPQ) May Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (V) Call Spread; Najarian Owns (AMD) calls; Najarian owns (HPQ), is short (HPQ) calls; Najarian Owns (VRSN) calls; Edwards Owns (VXX)

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