WASHING TON: During 1Q18, HP (HPQ) earned non-GAAP earnings of $0.48 billion, which increased from the year-ago quarter by $0.10 per share. The 1Q18 earnings included one-time income tax gains of $0.04 per share associated with the tax provision due to the revision in the US federal tax reform legislation.
Adjusting for the tax reform benefit, HP’s earnings increased 16% year-over-year (or YoY) to $0.44 in the first quarter. Tax-adjusted earnings of $0.44 came in above the previously guided range of $0.40 to $0.43 per share.The recently approved US Tax Cuts and Job Act changed the corporate tax structure. According to the new tax reform announced in December 2017, the corporate tax has been reduced to 21% from 35%. The US government has also imposed a one-time repatriation tax of 15.5% on cash held abroad and an 8% tax on non-cash assets.HP expects the tax rate in fiscal 1Q18 to be around 16%, much lower than the previously guided range of 21% to 22%, owing to changes in the tax structure. The company expects to see a net benefit of approximately $0.10 from tax provisions in fiscal 2018.
