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HP's revenue falls short of Wall Street's estimates

(Adds earnings details)

SAN FRANCISCO, May 22 (Reuters) - Hewlett-Packard Co posted a bigger-than-expected 1 percent drop in quarterly revenue, as it struggled to maintain its grip on a shrinking personal computer market while protecting profit margins.

The results were posted on HP's website more than half an hour early, ahead of the market's closing bell. Its shares slid as much as 3 percent before recovering to trade about 1 percent lower at $32.15 in late trade.

The results marked the 11th straight quarterly revenue decline for the world's largest maker of personal computers. HP recorded sales of $27.3 billion in its fiscal second quarter, ended April 30, just shy of the $27.41 billion Wall Street had expected.

The Silicon Valley company is trying to reduce its reliance on PCs and move toward computing equipment and networking gear for enterprises, part of Chief Executive Meg Whitman's multi-year turnaround effort.

On Thursday, the company reported non-GAAP diluted net earnings 88 cents a share, up 1 percent from a year earlier and about level with what analysts, on average, had expected.

HP did not immediately respond to requests for comment on its early results release.

(Reporting by Edwin Chan; Editing by Steve Orlofsky and Richard Chang)