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After Hours Action: Hewlett Packard

Tuesday, 18 May 2010 | 5:47 PM ET

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.

HP Call Update
CNBC's Jim Goldman has the details on HP's earnings and outlook on Palm.

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)

For Tim Seymour

Seygem Asset Management Is Short (EEM)

For Dennis Gartman
Funds Managed By Dennis Gartman Are Short (GS)
Funds Managed By Dennis Gartman Own (MMM)
Funds Managed By Dennis Gartman Are Short Gold
Funds Managed By Dennis Gartman Are Short British Pound Sterling
Funds Managed By Dennis Gartman Are Short Euros
Funds Managed By Dennis Gartman Are Short Yen
Funds Managed By Dennis Gartman Are Short Australian Dollars
Funds Managed By Dennis Gartman Are Long Canadian Dollars

For Anthony Scaramucci
Scaramucci Owns (BUD), Skybridge Owns (BUD)

For Patty Edwards
Edwards Owns (GLD) for clients
Edwards Owns (INTC) for clients
Edwards Owns (NVDA) for clients
Edwards Owns (HD) for clients
Edwards Owns (HPQ) for clients
Edwards Owns (DELL) for clients
Edwards Owns (MSFT for clients
Edwards Owns (AAPL) for clients
Edwards Owns (GOOG) for clients
Edwards Owns (VIX) for clients
Edwards Owns (SPY) for clients
Edwards Owns (QQQQ) for clients

For Vijay Rakesh
Sterne, Agee & Leach Is A Market Maker In (AAPL)
Sterne, Agee & Leach Has Managed Or Co-Managed An Offering Or Provided Investment Banking Services For (AAPL) In Past 12 Months
Sterne, Agee & Leach Has Security Accounts Open For (AAPL)
Sterne Agee Financial Services Has Clearing Agreements With (AAPL)
Rakesh owns (AAPL)
Sterne, Agee & Leach Or Affiliates Own 1% Or More Of (AAPL)


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