Will H&R Block’s $80 Million Miss Cost You?
The company reported a 10% increase in revenue but a 0.6% fall in total returns it prepared in for tax year 2012. They still prepare a more than 133 million returns.
And, while changes in tax law often means filers need assistance, the battle in Washington over the fiscal cliff turned out to hurt the tax preparer. H&R Block cited a delay in filing deadlines as a reason the company didn't perform as expected.
H&R Block missed Wall Street's estimated revenue for the company by $80 million and their earnings estimates by more than $52 million. Still, the company's revenues were $2.2 billion, up 10% from the previous year.
The company also announced they were discontinuing a program where they would operate pop-up stores in 300 Wal-Mart sites.
Overall, though, H&R Block's stock has done pretty good for itself and is up over 50% in 2013.
Should you put your after-tax money on H&R Block? We ask Jeff Tomasulo, Managing Partner at Belpointe Alternative Investments, and Talking Numbers contributor Steve Cortes, Founder of Veracruz TJM, whether this will tax the company in the long run.
To hear analysis on H&R Block by Tomasulo and Cortes, watch the video above.