Hewlett-Packard up 2% after beating earnings expectations (HPQ)

HP shares are trading slightly higher in after hours trading, after fiscal q2 earnings of 1.09 per share beat Wall Street consensus by 4cents.  Guidance for next quarter is a bit light, but the company is increasing full year (fiscal year ending October) estimates above the consensus.

Revenue was up in each geography, and segment operating income improved quite a bit:

As HP increases their guidance for revenue and earnings, it looks like sales for this year will increase about 8%, with 2011 increasing another 6%.  Those are better growth numbers than their fellow uber-mega-large-cap DJIA technology peer, IBM, which is looking at 4% revenue growth this year and next.  Despite that, HP trades for 9.5times this year's expected earnings, cheaper than IBM.  And that's before netting out balance sheet cash, which is 13% of HP's market value compared to 8% at IBM.

I have Free Cash Flow Yield for HP running at about 9.5-13%, depending on whether you prefer trailing or forward estimates.  That is literally triple what HP's 2018 debt is yielding:

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