Hewlett-Packard Revises Quarterly Results Higher on Tax Settlement

Hewlett-Packard Co. (HPQ) on Tuesday revised its reported quarterly results higher due to a settlement reached with U.S. tax authorities over a multi-year audit.

The settlement with the Internal Revenue Service, signed on June 1, raised fiscal second-quarter profit by about $443 million, or 15 cents per share, to a total of $1.9 billion, or 66 cents per share. HP had been the subject of an audit of its federal tax returns for 1996 through 1998.

The company, which had reported on May 16 results for the quarter ended April 30, said it was required to adjust the prior figures because the agreement was signed with the IRS before it had filed quarterly financial statements with securities regulators.

HP also raised its earnings per share forecast for all of fiscal 2006, to a range of $2.02 to $2.06. Excluding amortization and other costs, the company expects earnings per share of $2.19 to $2.23.

Analysts on average had forecast fiscal year earnings per share of $2.08, excluding items, according to Reuters Estimates.