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• HPQ 72% Rate It

PC and printer maker Hewlett-Packard Company ( HPQ ) late Thursday delivered a mixed fiscal second quarter earnings report and announced a massive round of layoffs.

The Palo Alto, CA-based company reported fiscal second quarter net income of of $1.6 billion, or 80 cents per share, compared with $2.3 billion, or $1.05 per share, in the year-ago period. Excluding one-time items, adjusted profit was 98 cents per share.

Revenue edged slightly lower from last year to $30.7 billion.

On average, Wall Street analysts expected a smaller profit 91 cents per share, on lower revenue of $29.9 billion.

Looking ahead, H-P forecast fiscal third quarter profits of 94 to 97 cents per share, which would miss Wall Street's outlook of $1.02 per share.

In a separate announcement, the company said it would lay off around 27,000 workers, or 8% of its current workforce, in an effort to cut costs. The move will incur pre-tax charges of $1.7 billion in 2012, along with an additional $1.8 billion through 2014, but is expected to result in annualized savings between $3 billion and $3.5 billion.

Hewlett-Packard shares closed down more than 3% in Wednesday trading, but shares were indicated much higher in aftermarket action.

The Bottom Line
Shares of Hewlett Packard ( HPQ ) have a 2.51% dividend yield, based on today's closing stock price of $21.08. The stock has technical support in the $16-$19 price area. If the shares can firm up, we see overhead resistance around the $24-$25 price levels.

Hewlett-Packard Company ( HPQ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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