Lower Than Expected H&R Block Earnings

Tax Stories of the Jacksonsville Princess

Posted by srpatterson3 (#1) 322 days ago (http://fastswings.blogspot.com)

Taxpayers aren't rushing to file their taxes early this year, and it's
impacting H&R Block earnings. It was announced that the company had
huge fourth quarter losses because taxpayers are waiting later to file taxes.
H&R Block earnings are lower in other countries too.

Usually, H&R Block has losses for quarters that are outside of the
regular season. But the most recent losses were higher during the tax season,
and this isn't what Wall Street anticipated. Thus, the company shares dropped
by 5.1 percent, which resulted $31.22 per share. This is 2.5 percent lower than
last year. H&R Blocks also reported that they had 6 percent fewer U.S. tax
returns during the first three quarters of the year.

According to H&R Block, these loses were attributed to ongoing fraud and
late tax filing. When taxpayers file late, it takes longer for the company to
process their returns. The company also stated that the federal government as
well as state governments were trying to find a way to combat growing instances
of tax fraud. Hopefully, this will result in changes within the tax
industry.

H&R Block earnings had a loss of $81.7 million for the quarter. This is
equivalent to 35 cents per share. The loss was just $36.9 million during the
previous year. This equates to 34 cents a share, and sales went up by 6.8
percent to $475 million.

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