Hewlett-Packard (HPQ) Stock Gains in After-Hours Trading on Earnings Beat

NEW YORK (TheStreet) -- Shares of Hewlett-Packard (HPQ) were gaining 1.3% to $34.27 after-hours Thursday after the PC maker beat analysts' estimates for earnings in the fiscal second quarter.

HP reported earnings of 87 cents a share for the second quarter, above analysts' estimates of 86 cents a share for the quarter. Revenue fell 6.8% year over year to $25.45 billion for the quarter, below analysts' estimates of $25.63 billion.

The company said it expects earnings of 83 cents to 87 cents a share for the fiscal third quarter, compared to analysts' estimates of 87 cents a share for the quarter.

HP expects earnings of $3.53 to $3.73 a share for fiscal 2015, which ends in October, compared to analysts' estimates of $3.64 a share for the fiscal year.

"I'm pleased with where we ended the quarter, the continued success of our turnaround, and the progress we're making on separation," Chairman, President, and CEO Meg Whitman said. "Despite some tough challenges, we executed well across many parts of our portfolio, sustained our commitment to innovation, and delivered the results we said we would. HP is becoming stronger as we head into the second half of our fiscal year and separation in November."

TheStreet Ratings team rates HEWLETT-PACKARD CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate HEWLETT-PACKARD CO (HPQ) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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