Investors Want a Lot From H&R Block, Inc. (HRB)’s Biggest Quarter

In the end, H&R Block wasn’t able to deliver on its promise of tax-return growth, as the company announced toward the end of April that it had served 0.9% fewer clients through April 18 than it did the previous year. With its inability to gain market share from Intuit Inc. (NASDAQ:INTU), Blucora Inc (NASDAQ:BCOR), and other tax-preparation alternatives, it’s unclear why investors have been bidding the shares up so aggressively.

In H&R Block, Inc. (NYSE:HRB)’s quarterly report, look beyond the headline revenue and profit numbers to figure out where the company is having the most success getting clients and which products are driving revenue the most. Despite its short-term setbacks, H&R Block really does have a lucrative opportunity next tax season to capture a whole new audience, and so a disappointment that spurred a share-price plunge might actually provide a nice buying opportunity for long-term investors.

The article Investors Want a Lot From H&R Block’s Biggest Quarter originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Intuit. The Motley Fool owns shares of Intuit.

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