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HP in tax bonanza

Q2 earnings update raises expectations

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HP has issued a Q2 earnings update, hiking earnings and profits following a favourable settlement with the taxman.

Revenue was boosted $443m last quarter by the deal with the IRS over an audit of HP's 1996 to 1998 tax returns. The $1.5bn net income HP reported last month rose to $1.9bn on the back of the settlement.

HP's Q2 profits were $2bn, up from the earlier reported $1.6bn.

Per share earnings for fiscal year 2006 are now estimated at $2.04 to $2.06 , up from $1.87 to $1.91. More from HP here

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