Market Perform - Price 16.62 on Sept. 8
by Barrington Research

Total revenue from continuing operations increased 1.3% to $275.5 million in the first quarter of fiscal 2010 from $271.9 million last year, slightly below our ($280.8 million) and First Call consensus ($277 million) estimates. While we see no near-term catalyst for the stock price as we are off-season for the tax-services business (roughly 60% of annual revenue comes in the seasonally strong fiscal fourth quarter), HRB's valuation and cash-flow characteristics and the potential of a better-than-average tax season in 2010 (driven by likely tax code changes) are intriguing. For now, we are maintaining our Market Perform rating, until prospects for the 2010 tax season become more visible. Market cap: $5.6 billion.

Market Perform -- Price 16.80 on July 6
by Barrington Research

H&R Block recently reported the financial results of its fiscal fourth quarter and fiscal year (ended April 30), which were mixed. Management provided its fiscal 2010 guidance, expecting earnings from continuing operations to be in the range of $1.60 to $1.80 a share, in line with consensus estimate of $1.66. Fourth-quarter total revenues from continuing operations decreased 2.9% to $2.467 billion, from $2.541 billion last year, below our $2.654 billion estimate/First Call consensus $2.529 billion. During 4Q, HRB repurchased 5.6 million shares at an aggregate price of $98.7 million, or an average price of $17.53 per share, under a previously announced Board of Directors' authorization to purchase up to $2 billion of the company's common stock -- leaving approximately $1.9 billion [worth] of share-repurchase authorization remaining through June 2012. Market cap: $5.6 billion.

Stock Wrap: The Real Story, June 30: Oil futures fell, and the major stock indices in New York shed up to 1% Tuesday. The end of the second quarter is here, with an unexpected drop in consumer confidence.
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PEG of 1.24, and it pays a yield of 2.5%.

5.3%

Kansas City's tax services giant authorized $2 billion in share repurchases for the four year period 2009 through 2012. As the company aims to strengthen its balance sheet this year, they added that the buybacks will not start until the fourth quarter of 2009. This new buyback replaces the company's previous buyback plan, which had about 22 million shares remaining.

The board also voted to increase the annual dividend by 3 cents to 60 cents a share. The inflated dividend stands as the 11th consecutive year of dividend increases.

While most U.S. companies have been reporting dismal earnings due to the slowing economy, H&R Block recently announced stellar fourth quarter and full year results. In the fourth quarter, the company earned $543.6 million or $1.66 a share, compared with a loss of $85.6 million or 26 cents a share in the same period last year. Revenue for the quarter jumped 11% to $2.61 billion and revenue for the year was up 9.5% at $4.4 billion.

"During fiscal 2008, H&R Block served the tax needs of 23.5 million clients, the highest level in our history. Full year earnings per share from continuing operations exceeded our expectations, and reflect the best tax season for H&R Block since 1999", said Richard C. Breeden, Chairman of the Board.
After the report, HRB shares surged 6.4% or $1.40 to $22.23.

We like to see that Oppenheimer upgraded the stock to outperform after listening to the conference call. They were impressed that earnings beat estimates and they believe HRB will continue its focus on cost cutting.

The analysts mentioned, "HRB just completed its best tax season this decade and is well positioned to perpetuate its momentum into the FY09 tax season via its competitively differentiated Emerald Advance Line." They feel the stock is undervalued and lifted their price target to $27.

Kansas City's tax services giant authorized $2 billion in share repurchases for the four year period 2009 through 2012. As the company aims to strengthen its balance sheet this year, they added that the buybacks will not start until the fourth quarter of 2009. This new buyback replaces the company's previous buyback plan, which had about 22 million shares remaining.

The board also voted to increase the annual dividend by 3 cents to 60 cents a share. The inflated dividend stands as the 11th consecutive year of dividend increases.

While most U.S. companies have been reporting dismal earnings due to the slowing economy, H&R Block recently announced stellar fourth quarter and full year results. In the fourth quarter, the company earned $543.6 million or $1.66 a share, compared with a loss of $85.6 million or 26 cents a share in the same period last year. Revenue for the quarter jumped 11% to $2.61 billion and revenue for the year was up 9.5% at $4.4 billion.

"During fiscal 2008, H&R Block served the tax needs of 23.5 million clients, the highest level in our history. Full year earnings per share from continuing operations exceeded our expectations, and reflect the best tax season for H&R Block since 1999", said Richard C. Breeden, Chairman of the Board.
After the report, HRB shares surged 6.4% or $1.40 to $22.23.

We like to see that Oppenheimer upgraded the stock to outperform after listening to the conference call. They were impressed that earnings beat estimates and they believe HRB will continue its focus on cost cutting.

The analysts mentioned, "HRB just completed its best tax season this decade and is well positioned to perpetuate its momentum into the FY09 tax season via its competitively differentiated Emerald Advance Line." They feel the stock is undervalued and lifted their price target to $27.

Shares of H&R Block (HRB) were among the most actively traded stocks on the NYSE Monday.

3 Stocks I Saw On TV
Dan Fitzpatrick examines three stocks viewed on Fast Money and Mad Money. Today's stocks include H & R Block, Tenaris and United States Oil Fund.

Click here to watch the video.

i WORKED FOR THEM IN
THE 1980S

Reminds me that I gotta pay taxes