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| H&R Block |
Traditional brick-and-mortor tax preparers like H&R have struggled in recent years in the midst of customer migration to do-it-yourself preparation software like that from Intuit Inc. (INTU) as well as online filings.
Thursday, H&R Block said total tax returns prepared rose 5.7% so far this season. While its retail preparations were up 2.6% by volume, tax preparation fees through March 31 fell 2.2%. Nevertheless, fees had been down 4.1% at the end of February.
Total online returns jumped 29%. Including software-based returns and those made through the Free File Alliance, total digital returns were up 13%.
Chief Executive Alan Bennett said the return volumes through March were above the company's expectations. "We are achieving our key objective of driving volume and client growth, building a solid base for revenue and profit expansion in future years," he said.
H&R Block said it expects that by the end of the tax season, total retail tax returns prepared will increase 2% to 2.5% percent over the prior year, and retail net average fee per return is expected to decrease. The company also expects to incur an additional charge of approximately 5 cents a share for credit losses on its Emerald Advance line of credit.
In its previous quarterly results, H&R Block swung to a loss in the fiscal third quarter, attributing the red ink to an "industry-wide slow start to tax season." Like many in its industry, H&R Block reports most of its profit in the second half because of the seasonal nature of the tax-preparation industry.
H&R shares were down 1.75% at $17.66 in after-hours trading. Through the close, the stock has fallen 0.7% in the last year, while the broader market has climbed.
Sources: http://online.wsj.com
