On Feb. 28, tax preparation firm Jackson Hewitt
- Total sales grew 20%, attributed to increased financial product fees and average revenue per tax return.
- Diluted earnings also grew 20%. They would have been higher if not for $0.03 per share in litigation expenses; last year included a $0.06-per-share hit for similar expenses. Even excluding litigation costs, earnings came in below analyst expectations.
- Management is projecting fiscal 2007 reported diluted earnings of $1.87 to $1.97 per share, including litigation charges.
- The fourth quarter is key for tax firms such as Hewitt, H&R Block
(NYSE:HRB) , and Intuit(NASDAQ:INTU) , because most of their business comes in February through April. Stay tuned: Tax season is officially underway.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$112,880 |
$114,446 |
$95,155 |
20.3% |
|
Net Profit |
-- |
$27,538 |
$24,467 |
12.6% |
|
EPS |
$0.92 |
$0.83 |
$0.69 |
20.3% |
|
Diluted Shares |
-- |
33,235 |
35,678 |
(6.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
75.99% |
77.17% |
(1.18) |
|
Operating Margin |
42.62% |
44.36% |
(1.74) |
|
Net Margin |
24.06% |
25.71% |
(1.65) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$19,059 |
$15,150 |
25.8% |
|
Accounts Rec. |
$65,073 |
$20,184 |
222.4% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$43,814 |
$44,001 |
(0.4%) |
|
Long-Term Debt |
$253,000 |
$50,000 |
406.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Jackson Hewitt didn't include cash flow details in its earnings press release; Fools will have to wait until it files a 10-Q.
Find out why Fools always follow the money.
Related Foolishness:
Intuit, a former recommendation, made Inside Value subscribers very happy. Which other stocks are similarly delightful? Take a free 30-day trial of the service and find out.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.
