HP jumps as Whitman signals more cash for share…

SAN FRANCISCO -- Hewlett-Packard shares jumped more than 5% Wednesday after CEO Meg Whitman signaled more cash for shareholders and expressed confidence in her turnaround of the struggling PC and printer maker.

HP expects to have more financial flexibility to return cash to shareholders, while still investing in the company's future growth, Whitman said during an analyst meeting.

Whitman also said that HP is making "real progress" on a turnaround plan.

HP expects the year-over-year revenue decline in fiscal 2014 will moderate from fiscal 2013, CFO Cathie Lesjak added.

Whitman, the former eBay CEO, took the reins at HP in 2011 just as a downturn in PC demand was taking hold. That has dented HP's growth prospects, but the company still generates mountains of cash.

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After planned capital expenditures, HP expects free cash flow of $6 billion to $6.5 billion in its 2014 fiscal year. The company plans to return at least half of that cash - more than $3 billion - to shareholders through dividends and share repurchases, the CFO said.

HP shares climbed 5.9% to $21.97 during Wednesday afternoon trading. The stock was up almost 10% earlier in the day.

HP stock is up more than 50% so far this year. However, the stock has lost about half its value in the past five years as tablets and other mobile devices have eaten into sales of PCs and laptops, where HP dominates.