H&R Block Withdraws 2020 Guidance in Response to Tax-Filing-Date Extension

Accounting-services company H&R Block is withdrawing its 2020 financial guidance after the Treasury Department extended the filing period for tax returns in response to the coronavirus pandemic.
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Accounting-services company H&R Block said Wednesday that it was withdrawing its 2020 financial guidance after the Treasury Department extended the filing period for tax returns in response to the coronavirus pandemic.

The Kansas City, Mo., tax preparer said in a Securities and Exchange Commission filing that "various federal, state, and local governmental and other organizations have recommended or mandated wide-ranging and diverse restrictions on individuals and businesses as a result" of the coronavirus pandemic.

U.S. Treasury Secretary Steve Mnuchin on Tuesday said the government would allow  individuals and corporations to defer tax payments to the Internal Revenue Service for as long as 90 days after the usual April 15 deadline. 

In addition, H&R Block said, certain states have extended, and other states may extend, certain state-tax deadlines.

As a result, H&R Block is withdrawing its fiscal 2020 financial guidance "due to the uncertainty created by the above activity and the impacts" of the coronavirus pandemic, the filing said.

Earlier this month, H&R Block said it expected total 2020 revenue growth of 1.5% to 3.5%. Ebitda margin was expected between 24% and 26%.

The company beat Wall Street's third-quarter-revenue expectations but reported a wider-than-expected loss. 

H&R Block reported a loss of $129.7 million, or 67 cents a share, compared with a loss of $126.5 million, or 62 cents, in the year-earlier quarter. The adjusted loss came to 59 cents a share. 

Revenue rose to $519.2 million from $468.4 million. 

Analysts had estimated a loss of 55 cents a share on revenue of $485.6 million.