H&R Block Falling Despite Reaffirming Guidance

The tax preparer stands behind its previously announced 2002 EPS forecast.

Author:: Michael Dunn
Publish date:: Apr 16, 2002 8:46 AM EDT

H&R Block

was recently falling 5% despite reaffirming its 2002 guidance and naming a new chief operating officer.

The tax preparation company said it expects to earn between $2.20 and $2.30 a share in 2002 on 10% to 15% revenue growth. According to Thomson Financial/First Call, analysts are expecting the company to earn $2.29.

The company said its results through March remain on track, as fees for tax filing are up 10.6% and the number of customers is up 2.5% from last year to 14.9 million. The company expects its tax business to meet its previously announced revenue and earnings goals for the year.

H&R Block also named Jeffrey Yabuki as its new chief operating office, where he will continue to head the company's retail, software, and online tax operations as well as managing its financial advice and service offerings.

The company was downgraded to Market Perform by Goldman Sachs due to limited visibility.

Shares of HRB were recently trading at $42.25 after closing at $44.48 Monday.