Taxpayers aren't rushing to file their taxes early this year, and it's impacting H&R Block earnings. It was announced that the company had huge fourth quarter losses because taxpayers are waiting later to file taxes. H&R Block earnings are lower in other countries too.
Usually, H&R Block has losses for quarters that are outside of the regular season. But the most recent losses were higher during the tax season, and this isn't what Wall Street anticipated. Thus, the company shares dropped by 5.1 percent, which resulted $31.22 per share. This is 2.5 percent lower than last year. H&R Blocks also reported that they had 6 percent fewer U.S. tax returns during the first three quarters of the year.
According to H&R Block, these loses were attributed to ongoing fraud and late tax filing. When taxpayers file late, it takes longer for the company to process their returns. The company also stated that the federal government as well as state governments were trying to find a way to combat growing instances of tax fraud. Hopefully, this will result in changes within the tax industry.
H&R Block earnings had a loss of $81.7 million for the quarter. This is equivalent to 35 cents per share. The loss was just $36.9 million during the previous year. This equates to 34 cents a share, and sales went up by 6.8 percent to $475 million.