H&R Block Reports Higher Profit, But Misses Estimates

H&R Block HRB released its fiscal fourth-quarter earnings results on Wednesday after the closing bell. Despite reporting higher earnings and revenues for the period, the company's results came up short of Wall Street expectations. Nevertheless, the stock was trading up around 1.50 percent in Wednesday's after hours session. H&R Block reported net income of $664 million or $2.42 per share, compared to $586 million or $1.99 per share, in last year's corresponding period. On an adjusted basis, earnings were $698 million or $2.54 per share, compared to $603.5 million or $2.05 per share, last year. This missed analysts' consensus EPS estimates of $2.61. Sales in the quarter were $2.2 billion versus $2 billion in last year's fourth-quarter. This also came up short of Wall Street consensus revenue expectations of $2.28 billion. "Considering the challenges the industry faced this tax season, we're pleased to have executed well and delivered improved profits," said CEO Bill Cobb. "We made a number of decisions this year to optimize our promotional offerings and distribution channels in both the assisted and digital do-it-yourself categories," added Cobb. The company has cut jobs and streamlined its operations in recent quarters in order to focus on serving digital filings. Year-to-date, H&R Block shares have soared more than 55 percent after a long period during which the stock price languished.