Despite posting a net loss of $0.01 per share, I believe the tax preparer is projecting a positive outlook. Already one of the world's largest tax services providers, H&R Block prepared 6% more tax returns through February, compared to last year. There was a leap in online filings, and the company witnessed significant growth in its retail client base.
So, does this suggest that H&R Block is back in the game? Let's first take a look at some of the serious challenges the company has been facing. For one, the competition, consisting primarily of Intuit
In spite of all this, the company is showing positives. So much so that it surpassed analysts' expectations of adjusted earnings of $0.04 per share, reporting an adjusted profit of $0.14 per share.
H&R Block recently entered an agreement with Pageonce, one of the largest mobile personal finance service providers, to launch a mobile application for tracking tax refunds -- a brilliant move by the tax services provider that will allow it to explore a large untapped customer base.
Another upside is that the loss of those refund anticipation loans enables H&R Block to enter into contracts for financial products which it earlier could not. So it's possible we're looking at a larger resurgence in the company's financial performance.
These positive numbers will hopefully make up for the net loss incurred by the company. As of now, they have already helped the company's stock. The company has also seen the largest client growth in the last six years. The growth initiatives do seem to work in favor of Block.
So is Block the upcoming star of the market? Provide your viewpoint in the comments box below.
Fool contributor Zeeshan Siddique does not own any of the stocks mentioned in the article. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.