GO
Loading...

Mortgage Unit Hurts H&R Block Profits

H&R Block , the largest U.S. tax preparer, on Thursday said its quarterly loss nearly doubled, hurt by weakness in its mortgage operations.

For its fiscal second quarter ending Oct. 31, H&R Block's net loss rose to $156.5 million, or 49 cents per share, from $81.2 million, or 25 cents, a year earlier.

Revenue fell 7% to $563.2 million.

"The issue for us in the second quarter was ongoing weakness in the mortgage industry," Chief Executive Mark Ernst said in a statement.

Ernst said, however, that November results in tax services, the company's main business, are "encouraging." The company generates much of its profit and revenue in the quarter ending April 30, which includes the main U.S. tax filing season.

H&R Block's mortgage unit posted a $39 million pretax loss, compared with a year-earlier $48.8 million profit, as lending declined, margins shrank and credit losses rose.

Symbol
Price
 
Change
%Change
HRB
---

Featured

  • The Marriner S. Eccles Federal Reserve building in Washington.

    CNBC's Fed Survey shows market pros aren't very confident the Fed can end its easy money polices without a market crash, a recession or bad inflation.

  • Merck employees walk past a Merck sign in front of the company's building in Summit, New Jersey.

    Merck reported better-than-expected results, with sales of newer drugs offsetting declining sales of drugs facing generic competition.

  • Pfizer reported higher-than-expected second-quarter earnings, helped by growing sales of its cancer medicines.

  • An attendee is silhouetted against a Microsoft poster at the Microsoft Developers Build Conference in San Francisco, April 2, 2014.

    An agency that enforces antimonopoly laws visited company offices in four cities, as the country more closely scrutinizes multinational companies.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video