Analysts are estimating no change in the company's quarterly loss, but a year-over-year increase in revenue for the latest quarter.
Analysts have forecasted for a loss of 40 cents per share on revenue of $136 million for the quarter.
H&R Block posted a non-GAAP loss of 40 cents per share on revenue of $133.59 million for the quarter ended July 31, 2014.
The Kansas City, Mo.-based company is a provider of tax preparation such as assisted income tax returns and digital do-it-yourself tax solution, retail banking, and other services.
H&R Block stock closed down 1.31% to $34.02 on Monday afternoon.
Separately, TheStreet Ratings team rates BLOCK H & R INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOCK H & R INC (HRB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HRB's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for BLOCK H & R INC is rather high; currently it is at 65.60%. Regardless of HRB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HRB's net profit margin of 32.10% significantly outperformed against the industry.
- After a year of stock price fluctuations, the net result is that HRB's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BLOCK H & R INC's earnings per share declined by 19.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BLOCK H & R INC reported lower earnings of $1.75 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $1.75).
- HRB, with its decline in revenue, slightly underperformed the industry average of 3.1%. Since the same quarter one year prior, revenues fell by 10.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: HRB Ratings Report