Tax service provider H&R Block Inc. (HRB), Wednesday reported a higher profit in the fourth quarter on improved tax filings, especially on the digital front. Nonetheless, earnings and revenues for the quarter came in short of Wall Street estimates.
The results come in the wake of a challenging 2013 U.S. tax season, marked by legislation changes and delays in the opening of the IRS's e-file system.
H&R Block, which has cut jobs and shut down unprofitable offices, has benefited as more customers resorted to digital filings.
The company reported fourth quarter revenues of $2.2 billion, up from $2 billion a year ago. Analysts polled by Thomson Reuters estimated revenues of $2.28 billion for the quarter.
"Considering the challenges the industry faced this tax season, we're pleased to have executed well and delivered improved profits," said CEO Bill Cobb.
"We made a number of decisions this year to optimize our promotional offerings and distribution channels in both the assisted and digital do-it-yourself categories," added Cobb.
The Kansas City, Missouri-based company reported quarterly net income of $664 million or $2.42 per share, compared with $586 million or $1.99 per share last year.
Excluding items, adjusted earnings from continuing operations for the quarter was $698 million or $2.54 per share, compared with $603.5 million or $2.05 per share a year ago.
Analysts on consensus expected earnings of $2.61 per share for the quarter. Analysts' estimates typically exclude special items.
H&R Block stock closed Wednesday at $28.83, down 1.94%, on a volume of 2.2 million shares. In after hours, the stock gained $0.62 or 2.15%. In the past year, the stock has traded in a range of $15.00 - $30.23.
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