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Quick Take: Hewlett's Turnaround Plan

NEW YORK (TheStreet) -- TheStreet's Debra Borchardt was here to talk about Hewlett-Packard's (HPQ) recent earnings report that has shares flying high today.

Hewlett-Packard jumped in early market trading on the back of an upbeat second-quarter earnings report. The computer giant posted a profit of 87 cents per share, with analysts estimating a gain of only 81 cents per share. However, while the bottom-line numbers looked good, the top-line figures did not, with Borchardt noting, "revenue missed by a whopping 10%."

Although that's usually a bad sign, investors did like that management raised its full-year outlook on the heels of cost cuts. Borchardt was quick to point out that guidance was still within the range that was provided earlier this year.

Management added that the company would also see some extraordinary cash expenses from tax maneuvers and restructuring payments in the second half of 2013. However, the company did note that they were focusing more on corporate services than the personal PC market, with that market slumping 20% year over year.

While the earnings report was a mixed bag, the price action clearly indicates that investors are buying into the turnaround story and believe in CEO Meg Whitman.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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