HP Sees Charges Up to $1.4 Billion After Compaq Merger
Hewlett-Packard said the forecast includes estimates for restructuring of $450 million to $700 million, and for purchase accounting and goodwill costs also of $450 million to $700 million. It estimated the cash impact of the charges at $800 million to $1.2 billion.
Hewlett-Packard estimated that earnings for fiscal 2003 for the combined companies would be $1.51 a share, 12 percent above the Wall Street consensus estimate for Hewlett-Packard's stand-alone earnings of $1.35 a share.
The $1.51 estimate is based on analysts' consensus earnings forecast for Compaq's calendar 2003 of 49 cents per share, adjusted to Hewlett-Packard's October fiscal year-end. It excludes the impact of restructuring charges and non-cash charges associated with acquisitions.
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