H&R Block shares fall on weak Q1
H&R Block shares fall on weak Q1 (Global Markets) - Shares of H&R Block (HRB.N) fell 13 percent on Friday, a day after the largest U.S. tax preparer posted a 36 percent rise in quarterly loss, mainly due to a charge related to the sale of its consulting subsidiary RSM McGladrey.Stock Market Predictions
Analysts said though some investors may have been surprised by the huge charge, the company had indicated it when they announced the sale of RSM, and so it was expected to have an impact on the results.
Morningstar analyst Vishnu Lekraj said the RSM sale was a favorable action and that the stock's fall was due to uncertainties over H&R's future growth and general market conditions in which companies missing estimates are getting punished.
"Selling of RSM McGladrey and taking that charge is some near-term pain that's going to provide some long-term opportunities and some good long-term strategic moves," Lekraj told Global Markets.
Kansas City, Missouri-based H&R Block reported a lower-than-expected first-quarter revenue of $267.6 million.
H&R Block shares, which had earlier hit a low of $13.19, recouped some of their losses to trade down 12 percent at $13.38 on the New York Stock Exchange.
(Reporting by Aman Shah in Bangalore; Editing by Sriraj Kalluvila)