Earnings Analysis - H&R Block

LONDON, January 5, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings analysis on H&R Block Inc. (NYSE: HRB). On December 8, 2014, the company announced its financial results for Q2 FY15 (period ended October 31, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on H&R Block Inc. (H&R Block). For Q2 FY15, the company's total revenues increased to $134.63 million. The President and CEO of H&R Block, William C. Cobb, stated that the company has made progress this offseason in preparation for tax season 2015. He added that the company has made important investments in its business this year, which will enable it to improve its customer experience and operate more productively in the coming years. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q2 FY15, H&R Block's revenues increased to $134.63 million, from $134.34 million in Q2 FY14. The reported quarter revenue underperformed the Bloomberg analysts' expectations of $142.00 million. H&R Block's seasonal net losses from continuing operations during Q2 FY15 increased to $113.23 million, or $0.41 loss per share, from $103.02 million, or $0.38 loss per share, in Q2 FY14. Analysts from Bloomberg expected net loss of $113.67 million, or $0.41 loss per share, for Q2 FY15. Further, the company's adjusted loss from continuing operations in Q2 FY15 stood at $126.25 million, or $0.45 loss per share, compared to adjusted loss from continuing operations of $112.31 million, $0.42 loss per share, in Q2 FY14. The company typically reports a second quarter operating loss due to the seasonality of its core U.S. tax business. The free research on HRB can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=H%26R%20Block&d=05-Jan-2015&s=HRB

During Q2 FY15, H&R Block's revenues in its tax service segment increased 1% Y-o-Y to $128.63 million, primarily due to higher tax prep fees in the U.S. and Australia, and improved off season usage of the H&R Block Prepaid MasterCard- the Emerald Card. The Kansas City based company's Q2 FY15 operating expense in its tax service segment increased 6% Y-o-Y to $302.42 million, driven by higher depreciation and amortization from planned office and technology upgrades and increased wages. Meanwhile, the company's total expenses in its corporate segment increased by $1 million Y-o-Y to $30 million in Q2 FY15, primarily due to higher wages, which was partially offset by lower provisions for losses on mortgage loans held for investment. H&R Block's tax services business segment reported adjusted non-GAAP pretax loss in Q2 FY15 of $178 million, up 13% Y-o-Y. Moreover, the pretax loss in the company's corporate business segment increased by $4 million Y-o-Y to $24 million in Q2 FY15.

Mr. Cobb said that H&R Block's Tax Plus strategy is yielding results, and the company is looking forward to continuing its strong momentum this tax season. Sign up and read the free analyst's notes on HRB at:

http://get.Investor-Edge.com/pdf/?c=H%26R%20Block&d=05-Jan-2015&s=HRB

The company had recently paid a quarterly cash dividend of 20 cents per share to its shareholders, on January 2, 2015, making this its 209^th consecutive quarterly dividend since it went public in 1962.

Stock Performance  

On the day following the earnings release, December 09, 2014, H&R Block's stock plummeted 5.02%, to close the session at $32.34. Since then, shares of the company have witnessed a mixed momentum. On the last close, Friday, January 02, 2014, H&R Block's shares finished 1.78% lower at $33.08. The company's shares vacillated between $32.78 and $33.91 during the session. A total of 2.06 million shares were traded, which was below its three months average volume of 2.34 million shares. Over the past three months and over the previous one year, the company's shares have gained 4.49% and 12.98%, respectively. However, the stock has fallen by 1.90% in the last three trading sessions. Shares in H&R Block closed above their 50-day and 200-day moving averages of $32.78 and $31.41, respectively. Furthermore, the stock traded at a PE ratio of 19.38 and has a Relative Strength Index (RSI) of 48.87. Visit Investor-Edge and access the latest research on HRB at:

http://get.Investor-Edge.com/pdf/?c=H%26R%20Block&d=05-Jan-2015&s=HRB

Sneak Peek to Corporate Insider Trading  

In the last one month H&R Block has reported one insider transaction to the U.S. Securities and Exchange Commission (SEC). On December 3, 2014, Kip Knight, President - U.S. Retail Operations, at H&R Block, sold 1,276 shares, worth $43,983.70, at a price of $34.47 per share. Complimentary in-depth research on HRB is available at:

http://get.Investor-Edge.com/pdf/?c=H%26R%20Block&d=05-Jan-2015&s=HRB

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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