If you're reading this and asking, "Who is Jackson Hewitt Tax Service
All-time game-show champion Ken Jennings, a 30-year-old Salt Lake City software engineer, broke his 74-game winning streak Tuesday night (walking away with more than $2.5 million) when he failed to correctly produce the question for this answer: "Most of this firm's 70,000 seasonal white-collar employees work only four months a year."
The game-show "whiz kid" went with Motley Fool Stock Advisor recommendation FedEx
The correct question was: "Who is Jackson Hewitt Tax Service's biggest competitor: H&R Block
Not embellished were Jackson Hewitt's recent quarterly results. Revenue was down 1.7%, expenses were up 8.3%, and the net loss was 26% worse. Yikes, that's ugly -- although it is the slow season in the tax business (which picks up in January) and the company seems on track to have another solidly profitable year.
Jackson Hewitt's increased loss can be traced to two things: Since its July initial public offering by former owner Cendant
Unlike Block, which has expanded aggressively into mortgages and other businesses, Jackson Hewitt is primarily focused on preparing taxes -- and seems inclined to let Intuit
Analysts expect the company to earn $1.14 this fiscal year and $1.40 next year. Currently trading at a modest 20 times trailing earnings, the shares are up 30% since the company's IPO. With death and taxes a given, Jackson Hewitt's profits are not in jeopardy (small "j") -- at least for now -- as long as citizens want face-to-face help with their taxes.
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Fool contributor W.D. Crotty does not own stock in the companies mentioned.