H&R Block (HRB) Stock Surging on Fiscal 2015 Revenue Growth

NEW YORK (TheStreet) -- Shares of H&R Block (HRB) are surging 3.39% to $32.30 after the U.S. tax services provider reported a revenue increase in fiscal 2015 for the third consecutive year.

For the fiscal year that ended April 30, the company reported revenue of $3.08 billion, up 1.8% from $3.02 billion in fiscal 2014.

"Our DIY products had a very strong year, increasing revenues, return counts, and market share," CEO Bill Cobb said in a conference call with analysts.

However, net income for the 12-month period fell to $487 million, or $1.75 per share, compared to net income of $500 million, or $1.81 cents per share in the same quarter a year ago.

The Missouri-based company was expected to earn $1.73 per share on revenue of $3.09 billion for the fiscal year 2015, according to analysts polled by Thomson Reuters.

Separately, TheStreet Ratings team rates BLOCK H & R INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLOCK H & R INC (HRB) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, compelling growth in net income and increase in stock price during the past year. We feel its strengths outweigh the fact that the company shows low profit margins."

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