Northern, WI 03/11/2013 (usmarketsdaily) - H&R Block Inc. (NYSE:HRB) reported a considerable widening of its third quarter loss, due primarily to the fact that the U.S tax season has been so far delayed, thus affecting the entire industry and influencing the main actors in this field.
Due to ever-going political warmongering, coped with the larger than life tax debate in the United States, the Internal Revenue Service or I.R.S. has announced it has delayed the start of the tax season. Together with the fact that this announcement was made a day prior to H & R Block`s announcement of its third fiscal quarter, the outcome was predictable.
Lack of profitability has also lead the industry giant, which employs over 2.500 people, to cut back on its mortgage and lending operations, shifting back to its main purpose, meaning tax-preparation. The company has also negotiated further with its software provider Intuit Inc. (NYSE: INTU), in order to drive as many of its operations possible online.
Losses tallied roughly $18 million, as compared to $3,3 million losses recorded the year before, meaning almost 7 cents per share. Also, one must note its severe decrease in revenue, down 29 % to circa $472 million, well below analysts’ expectations, but explainable due to the delaying of the tax season.
H&R Block`s has also seen a decrease in its gross margin, as it fell abruptly from just over 31 % to right above 20 %. In spite of these bleak numbers, the company`s shares rose to just over $25 per share and have risen with over 35 % ever since the year begun.
The shares of H&R Block Inc. (NYSE:HRB) were down by 0.33% and currently at $27.19