H&R Block Drops As Losses Widen (HRB)
Shares of H&R Block (NYSE: HRB) are down in after hours trading after the company announced the financial results for its fiscal 2014 first quarter ended July 31, 2013.
Revenues rose to $127 million (a 32 percent increase) versus Street estimates of $98.40 million, but the first-quarter EPS came in at $(0.40). Wall Street expected an EPS of $(0.37).
H&R Block also gave an update regarding its asset and liabilities sale to Republic Bancorp, Inc. (NASDAQ: RBCAA). The company reiterated that the transaction is subject to various closing conditions, as well as the receipt of regulatory approvals from each party's respective regulators. If regulatory approvals are not received by September 30, 2013, the transaction will not occur before 2014.
"While we're disappointed that it is not likely that we'll be able to complete the bank transaction in time for this tax season, we remain focused on exiting our bank and continue to believe it is in the best interests of our shareholders," Bill Cobb, President and CEO of H&R Block, said in a company release.
"Our overall strategy has not changed, and we're well positioned to continue growing our business profitably and to continue providing significant shareholder returns."
Shares of the stock are currently down roughly four percent. At one point the stock had plummeted seven percent.
In July, BTIG Research downgraded its rating on H&R Block from Buy to Neutral. BTIG's researchers also removed their Price Target of $31.
Earlier in the summer, H&R Block disappointed investors with its fiscal fourth quarter results. The company increased its profits but still managed to miss Wall Street's high expectations.
Despite its struggle to impress investors, H&R Block is still enjoying impressive year-to-date gains. Thus far the firm has gained more than 46 percent in value.
Over the last two years, shares of H&R Block have increased more than 108 percent.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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