Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, September 4, 2009

Article Excerpt

H&R BLOCK INC., $16.62, New York symbol HRB, lost $130.6 million in its first quarter, which ended July 31, 2009. That’s 1.7% higher than the $128.4 million it lost a year earlier. Earnings per share were unchanged, at $0.39. That’s a little worse than the $0.37-a-share loss that analysts were expecting. Revenue rose 1.3%, to $275.5 million from $271.9 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. Last year, H&R Block bought its last major independent franchisee for $279.2 million. This business operated over 600 tax offices. H&R Block now owns roughly two-thirds of its 12,900 offices in the U.S. The expenses related to this takeover, including severance payments and investments in new technology, were the main reason for the higher first-quarter loss. However, H&R…