Written by StockNews.com
H&R Block Inc. (NYSE: HRB) late Tuesday [Mar 7, 2017 | 4:29pm] posted a less than expected net loss for the fiscal third quarter, along with much higher than anticipated revenue, sending its shares soaring in aftermarket trading.
The Kansas City-based tax prep specialist reported Q3 EPS of ($0.49) per share, which was $0.03 better than the Wall street consensus view of a loss of ($0.52).
Revenues fell 4.8% from last year to $452 million, easily topping analysts’ view for $427.47 million.
HRB noted that its revenues and earnings for the third quarter were negatively impacted by a delayed tax season, but reiterated its financial outlook for the full year.
Additionally, H&R Block said its tax return volume outperformed industry results, according to IRS data culled through February 24. The company also saw market share growth in both the Assisted and DIY categories.
The company commented on its recent progress via press release:
“We are delivering what we promised in December. Through aggressive Assisted and DIY offers, we are achieving our goal of new client growth and I’m pleased that we gained market share in both the Assisted and DIY tax preparation categories in the first half of the tax season,” said Bill Cobb, H&R Block’s president and chief executive officer. “I’m proud of what we have accomplished so far. These results are in line with our expectations for the first half of the season. And with our new partner, IBM Watson, we are focused on continued execution of our reinvented client experience over the remainder of the tax season.”
H & R Block Inc. shares rose $1.52 (+7.29%) to $22.36 in after-hours trading Tuesday. Year-to-date, HRB had declined -9.35% prior to today’s report, versus a 6.03% rise in the benchmark S&P 500 index during the same period.
HRB currently has a StockNews.com POWR Rating of D (Sell), and is ranked #36 of 38 stocks in the Consumer Financial Services category.
