H&R Block Q4 Profit Falls, but Adjusted Net Beats View (HRB)

By Dividend.com Staff,

Shutterstock photo

Tax preparer H&R Block, Inc. ( HRB ) late Thursday said its fourth quarter profit fell 2% from last year, but its adjusted profit beat analyst expectations.

The Kansas City-based company reported fiscal fourth quarter net income of $690.8 million, or $2.10 per share, compared with $706.9 million, or $2.08 per share, in the year-ago period. Excluding one-time items, earnings from continuing operations were $2.11 per share.

On that basis, Wall Street analysts expected a smaller profit of $2.04 per share.

The company said that operating expenses fell 5% in the quarter to $1.22 billion, and unveiled plans to cut expenses by $140 to $150 million per year by the end of fiscal year 2012. It will accomplish those savings through job cuts and shuttering offices.

H&R Block shares were mostly flat in premarket trading Friday.

The Bottom Line
We had removed shares of HRB from our "recommended" list Oct.6, 2008, when the stock was trading at $23.72. The company has a 4.01% dividend yield, based on last night's closing stock price of $14.96. The stock has technical support in the $12-$14 price area. If the shares can firm up, we see overhead resistance around the $17 price level. We would remain on the sidelines for now.

H&R Block, Inc. ( HRB ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: HRB

More from Dividend.com



Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com