Meg Whitman

Photo: Joe Seer / Shutterstock.com

Investors are tickled that HP’s earnings beat Wall Street’s expectations. The company reported Q2 EPS at $0.98 and revenues of $30.69 billion.

The Street wanted to see EPS of $0.91 and revenue of $29.92 billion

Those expectations were pretty low — analysts weren’t looking for any growth at all. HP reported net revenue of $31.6 billion in the year ago quarter.

Investors like the numbers. Stock is up 3% after a day of heavy trading.

But it also announced it would be laying off 27,000 employees. That’s huge.

As for outlook, HP doesn’t offer it on revenue anymore. Next quarter it says non-GAAP diluted EPS will be in the range of $0.94 to $0.97 and GAAP diluted EPS to be in the range of $0.00 to $0.03.

For the full year fiscal 2012, HP now estimates non-GAAP diluted EPS to be in the range of $4.05 to $4.10 and GAAP diluted EPS to be in the range of $2.25 to $2.30.  HP has previously promised EPS of $4 a share.

Things were mixed for individual units within HP:

The PC group is called the Personal Systems Group (PSG) and revenue was flat year over year with a 5.5% operating margin.

Services revenue declined 1% year over year with an 11.3% operating margin. This is the unit expected to take the biggest hit in layoffs.

Imaging and Printing Group (IPG) revenue declined 10% year over year with a 13.2% operating margin.

Enterprise Servers, Storage and Networking (ESSN) revenue declined 6% year over year with an 11.2% operating margin.

HP Financial Services revenue grew 9% year over year nearly half, 4%, from an increase in net portfolio assets and a 5% increase in financing volume.

Software revenue grew 22% year over year with a 17.7% operating margin, including the results of Autonomy.

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