H&R Block Reports Lower Losses in Q2 (HRB)
Tax preparation company, H&R Block, Inc.( HRB ) reported Q3 loss on Thursday, but beat analysts loss estimates.
The Kansas City, MO based company reported a second quarter net loss of -$105.24 million, or 39 cents per share, compared to last years loss of -$141.72 million, or 47 cents per share. The company's loss from continued operations was 37 cents per share. On average, analysts expected a loss of 41 cents per share.
Reported revenue came in at $137.3 million, up 3% from last years revenue of $129.2 million. Analysts expected to see revenue of $129.6 million.
HRB reported that the majority of their earnings are obtained from tax season, and they are expecting to improve earnings in the next quarter. CEO Bill Cobb commented, "the U.S. tax season is right around the corner and we believe we're on pace to deliver significant earnings and margin expansion in fiscal 2013."
Additionally, the company reported that they have consulted with Goldman Sachs to look into banking options. HRB hopes to eliminate current regulations that they are abiding by.
H&R Block shares were mostly flat during premarket trading Thursday. The stock is up 7.59% YTD.
The Bottom Line
Shares of H&R Block ( HRB ) have a 4.55% dividend yield, based on last night's closing stock price of $17.57. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $18-$20 price levels.
H&R Block, Inc.( HRB )is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.