Tax preparer H&R Block, Inc. (
) 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
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
H&R Block shares were mostly flat in premarket trading
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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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