H&R Block Shares Jump Depsite Big Q3 Loss Due to Tax Season Delay (HRB)
After the bell on Thursday, tax preparation company H&R Block, Inc. (HRB) reported a steep loss in the third quarter, as earnings and revenue were hurt by the effects delayed tax season.
The Kansas City, Missouri-based company said it posted a loss of $17.7 million, or 7 cents per share, in the third quarter, compared to a loss of $3.3 million, or 1 cent per share, in the same quarter a year earlier.
The loss from continuing operations in the quarter was $16.9 million, or 6 cents per share, versus a loss of $3.6 million, or 1 cent per share, a year ago.
Adjusting for one-time items the loss for the quarter was $60.5 million, or 22 cents per share.
H&R Block’s total revenues for the third quarter were down 29% to $472.0 million from $663.3 million a year ago. A big reason for the decline in revenue is the delayed tax season due to the fallout from the “fiscal cliff” resolution on January 1st. The IRS did not begin accepting tax returns until January 31, two weeks later than they usually do.
According to analysts polled by Thomson Reuters, the company was expected to report a loss of 1 cent per share on revenue of $563.60 million in the third quarter.
Despite the poor third quarter results, the company said it expects to see a 1% to 2% growth in US tax filings by the end of tax season. Furthermore, it expects to deliver significant earnings and margin expansion in fiscal 2013 due to cost cutting efforts.
H&R Block shares were up $2.08, or +8.33%, during Friday morning trading. The stock is up +67.81% over the past twelve months.
The Bottom Line
Shares of H&R Block (HRB) have a dividend yield of 2.97% based on Friday’s intraday trading price of $26.90 and the company’s annualized dividend payout 80 cents per share.
H&R Block, Inc. (HRB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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