graphic
News > Companies
H&R Block beats forecasts
February 22, 1999: 8:52 a.m. ET

Firm in merger talks as strong start to tax season helps cut losses
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - H&R Block Inc. said Monday it is in talks on a possible merger and reported a sharply lower loss, easily beating forecasts on Wall Street.
     The nation's biggest tax preparation services company said it is talking with McGladrey & Pullen, an accounting and consulting firm, about a possible merger. It gave no details, saying only there is no guarantee the talks will result in a deal.
     The Kansas City, Mo.-based company said a strong start to the tax season helped it reduce losses from ongoing operations by 81 percent.
     For its fiscal third quarter, ended Jan. 31, the company reported a loss of $2.8 million, or 3 cents a share, from continuing operations compared with a loss of $14.8 million, or 14 cents a share, a year earlier. Wall Street had been looking for a loss of 17 cents a share for the latest quarter, according to First Call, which tracks analysts' estimates.
     Revenue jumped 46 percent to $291 million from $199 million.
     "The tax season has gotten off to a strong start, which contributed to our solid results," President Frank Salizzoni said, adding that the rest of the tax season was "critical" to results.
     The results exclude a loss of $20 million, or 21 cents a share, in the latest quarter from the sale of a credit card business and a gain of $232 million, or $2.18 a share, partly from its sale of CompuServe last year.
     Including the discontinued operations, Block's net loss was $23.1 million, or 24 cents a share, compared with net earnings of $214.6 million, or $2.04 a share, a year earlier.
     H&R Block stock rose 9/16 to 41-1/8 Friday. Back to top

  RELATED STORIES

The cruelest month - April 10, 1998

  RELATED SITES

H&R Block

Internal Revenue Service


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic


Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.