H&R Block Q3 Profit Rises, but Filed Returns Plunge 9% (HRB)

in Gold Gold Investing Gold Investment Guidance by admin — March 9, 2010 6:56 am | no comments

Tax preparation company H&R Block, Inc. ( HRB ) said late Monday that its fiscal third quarter profit rose 7% from last year, despite fewer tax returns filed. The Kansas City-based company reported fiscal third quarter net income of $50.6 million, or 15 cents per share, compared with $47.4 million, or 14 cents per share, in the year-ago period. Revenue fell 6% from last year, to $934.9 million. On average, Wall Street analysts expected a slightly smaller profit of 14 cents per share, albeit on higher revenue of $949.6 million. The company said that the total number of tax returns it prepared through Feb. 28 were down 9.4% from last year. As a result, HRB refused to provide fourth quarter or full-year guidance. That refusal seemed to worry investors, as H&R Block shares fell 84 cents, or -5%, in premarket trading Tuesday. The Bottom Line We had removed shares of HRB from our “recommended” list last Oct.6, when the stock was trading at $23.72. The company has a 3.58% dividend yield, based on last night’s closing stock price of $16.74. The stock has technical support in the $15 price area. If the shares can firm up, we see overhead resistance around the $20 price level. We would remain on the sidelines for now. H&R Block, Inc. ( HRB ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .