After Hours Action: Hewlett-Packard

After the bell, the traders pored over results from Hewlett-Packard looking to see if the drama surrounding the company would drag down sentiment.

But those worries were unfounded; the Street liked what HP had to say.

Shares climbed in extended trade after the computer giant raised its fiscal 2011 revenue and earnings forecasts with the firm citing strong computer sales as well as strong storage sales.

But perhaps more important results suggested that HP had not suffered any ill effects from the internal turmoil that has vexed the company since August, beginning with the abrupt departure of former chief Mark Hurd.

Wall Street is less focused on HP's typically solid results than they are on getting a better fix on new CEO Leo Apotheker, analysts say.

His most immediate task may be to restore stability and poise following a tumultuous four months that saw Hurd's departure and a nasty spat with one-time partner Oracle Corp.

Investors were also pleased to that HP did not highlight any impact from the government spending woes that plagued rival Cisco, assuaging fears that public sector budget cuts were beginning to hurt technology providers.

"Demand is not as bad as people had thought. After Cisco guided cautiously, people got nervous. Now it appears demand is not as bad," said Wedbush Morgan Securities analyst Kaushik Roy.

Looking at the numbers, the company earned $1.33 a share, beating analyst estimates of $1.27 a share, according to Thomson Reuters.

Revenue rose 8 percent to $33.3 billion, above Wall Street's forecast of $32.75 billion.

The tech giant said it expects its current quarter revenue between $32.8 billion to $33 billion and earnings of $1.28 a share to $1.30 a share, excluding items. Earlier Wall Street consensus was revenue of $32.74 billion and earnings of $1.22 per share.

In addition, the company said it expects 2011 full-year revenue of between $132 billion to $133.5 billion, and earnings of between $5.16 a share and $5.26 a share. Wall Street analysts expected 2011 revenue of $132.4 billion, and earnings of $5.11 a share.

What’s the trade?

At 9 times earnings, I think valuations are extraordinarily compelling, says Guy Adami. I suspect the worst headline risk is now behind this company.

I find the valuation very attractive too, adds Karen Finerman.

I also like this stock, adds Tim Seymour. I think earnings were just what the company needed to deflect attention away from the CEO circus. Now investors can focus on numbers.

I liked hearing that enterprise spending was strong, adds Brian Kelly. I think that's bullish largely and I’m long the XLK.

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Trader disclosure: On November 22, 2010, the day this video was recorded, 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), (NUE), (MSFT), (INTC), (BTU), (GS); Weiss Owns (MEE), (TSN), (QCOM), (JWN), (UAL), (CYT), (DIS); Weiss Is Short (UNH) Calls; Weiss Is Short (LCRX); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IWM); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman Owns (AAPL); Finerman Owns (BAC); Finerman's Firm Owns (GENZ); Finerman's Firm And Finemran Own (HPQ); Finerman's Firm And Finerman Own (JCG); Finerman's Firm Owns (JPM) Leaps, Finerman Owns (JPM); Finerman's Firm Owns (SKS); Finerman's Firm Owns (TGT); Finerman's Firm Owns (WMT); Seymour Owns (AAPL), (BAC), (INTC), (IPI), (POT), (HPQ); Jon Najarian Owns (SNDK); Jon Najarian Owns (AKAM); Najarian Owns (CRUS), Is Short (CRUS) Calls

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