Please ensure Javascript is enabled for purposes of website accessibility

Why H&R Block Stock Fell Today

By Joe Tenebruso - Mar 6, 2020 at 5:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Larger losses had investors asking for a refund.

What happened

Shares of H&R Block (HRB 1.96%) dropped 5% on Friday, following the release of the tax preparation company's fiscal third-quarter results. 

So what

Revenue rose 11% year over year to $519 million, topping Wall Street's expectations for revenue of $485.6 million. Acquisitions and higher demand for its assisted and do-it-yourself tax prep offerings contributed to the gains.

But Block's losses were larger than many analysts anticipated. The company produced an adjusted loss per share from continuing operations of $0.59, compared with a loss of $0.52 in the prior-year period. Consensus estimates had been for a loss of $0.55. Higher operating and interest expenses contributed to the decline.

A signpost with signs labeled profit and loss.

Image source: Getty Images.

Now what

Despite the larger losses, H&R Block said that it expects to achieve its full-year EBITDA margin target of 24% to 26%. 

"We're making progress on our strategy to transform our business by connecting human expertise with technology to drive transparency and value for consumers and small business owners," CEO Jeff Jones said in a press release. "We're seeing the positive results of these efforts in our Assisted business and will apply learnings from the first half to deliver on our outlook for the fiscal year."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

H&R Block, Inc. Stock Quote
H&R Block, Inc.
HRB
$34.82 (1.96%) $0.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
321%
 
S&P 500 Returns
111%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.