Yesterday, H&R Block Inc. (HRB) announced its preliminary tax season results for the interim period through Mar 15, 2010. While the company experienced an improvement in results during the Mar 1 - 15 period, the results were still down for the tax season-to-date through March 15. For the period March 1 – 15, same-office tax returns prepared in retail operations increased 7.0% from the prior-year period, while total tax returns prepared grew 4.3%. Total retail returns prepared were up 4.4% and the net average retail fee per tax return increased 2.1%. According to H&R Block’s management, the improvement in results in the first half of March reflects an increase in overall return filing trends, a deceleration of assisted returns shifting to the digital mode and a decline in market share loss in both the Retail and the Digital businesses. However, for the tax season-to-date through March 15, same-office tax returns prepared in retail operations dropped 5.1% from the prior-year period. Total tax returns prepared were down 6.3%. Though total retail returns prepared decreased 7.6%, net average retail fee per tax return increased 2.3%. Digital returns prepared by H&R Block were down 3.4%, while online returns rose 2.6%. Earlier in March, H&R Block reported fiscal third quarter 2010 (ended Jan 31, 2010) net income of $50.6 million or 15 cents, up from $47.4 million or 14 cents in the year-ago period. However, income from continuing operations was 16 cents, down 4 cents from the prior-year period. Results were slightly ahead of the Zacks Consensus Estimate of 14 cents, primarily driven by cost cuts. However, revenues were down year-over-year as the company prepared fewer tax returns. The tax filing market is experiencing shrinkage due to the rise in unemployment. Also, there is a continued shift from assisted tax preparation to the digital space, where H&R Block’s growth is not yet satisfactory. Following the announcement of the interim results, the shares of H&R Block were up 49 cents or 2.86% to $17.62 in Tuesday's regular session on the New York Stock Exchange.
updated Mar 25, 2010
Sign up to get our newsletter with money saving tips, deals and coupons - no spam.
discounts & deals from all banks in one app?
At GET.com we compare credit cards and rate them objectively based on the credit card's features, interest rates and fees.
Cards are rated by our team based primarily on the basis of value for money to the cardholder. The GET.com team rates each card based on its annual fee, rewards, benefits, bonus, introductory APR, ongoing APR, flexibility (in how its benefits can be used and how rewards are earned and redeemed), and other card features.