Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, December 11, 2009

Article Excerpt

H&R BLOCK INC., $20.62, New York symbol HRB, lost $126.5 million, or $0.38 a share, in its second quarter, which ended October 31, 2009. That’s 5.0% less than the $133.2 million, or $0.40 a share, that it lost a year earlier. The current figure also beat the $0.40-a-share loss that analysts were expecting. Revenue fell 7.2%, to $326.1 million from $351.5 million. H&R Block gets about 75% of its revenue from its tax-preparation business. As a result, it earns most of its money during its fourth quarter, which includes the April 15 income-tax-filing deadline. The company typically loses money in its first and second quarters. The lower losses reflect H&R Block’s focus on cutting costs as more tax filers switch from tax professionals to tax-preparation software (including H&R Block’s TaxCut program). That’s why the company is closing 400 of its roughly 12,900 U.S. offices. It is also closing its 1,200 temporary locations inside Wal-Mart stores. H&R Block is also doing a good…