Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, July 3, 2009

Article Excerpt

H&R BLOCK INC., $16.89, New York symbol HRB, earned $513.1 million in its latest fiscal year, which ended April 30, 2009. That’s up 15.0% from $445.9 million in the prior year. Earnings per share rose 12.5%, to $1.53 from $1.36, on more outstanding shares. Revenue fell 0.1%, to $4.08 billion from $4.09 billion. Revenue from the company’s main income-tax preparation division (which accounts for 74% of its revenue) rose 1.5%. H&R Block’s U.S. offices processed 5.8% fewer personal income-tax returns this year, but the average fee per return rose 7.2%. The number of U.S. tax returns processed online, including those done through H&R Block’s TaxCut software, jumped 21.1%. However, a 4.7% revenue drop at the company’s business-services division, which sells tax, accounting and consulting services, offset these gains. As well, revenue at the consumer-finance division, which sells loans and credit cards to H&R Block’s tax-preparation clients, fell 0.6%. H&R Block should be able to attract more clients and charge higher fees as…