H&R Block Down Slightly After Unexpectedly Low Q3 Results
H&R Block (NYSE: HRB) is down more than one percent in after hours trading after the company reported its third quarter results.
The firm reported a Q3 EPS of $(0.77) versus the Street estimate of $(0.11).
H&R Block blamed the massive earnings miss on the “delayed opening of the Internal Revenue Service's (IRS) e-file system,” as well as “revenue related to tax returns prepared but not yet filed totaling $277 million” that has now been shifted to the company's fiscal fourth quarter.
"In line with the strategy outlined at our most recent investor day last December, we entered this tax season with a solid plan focused on growing Tax Plus revenue," Bill Cobb, H&R Block's president and CEO, said in a company release. "While there is still over a month left in this tax season, our early results indicate that we are on track to achieve our objectives this year.”
H&R Block's seasonal business may have presented some challenges, but investors tend to take a favorable view of the stock.
Year-to-date, H&R Block was up more than five percent at market close on Wednesday, March 5. The stock has gained more than 23 percent over the last 12 months.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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