- While H&R Block's (NYSE:HRB) fiscal first quarter typically represents less than 5% of annual revenues and less than 15% of annual expenses, management in the last couple of years has boosted expectations for off-season quarters with its "year round" plan, writes BTIG's Mark Palmer.
- In that respect, last night's 2017 FQ1 top- and bottom-line misses were a disappointment, says Palmer. Adjusted loss per share of $0.55 matched his estimate, but fell short of the $0.53 consensus, and revenue of $125.2M missed the Street at $132.8M and Palmer at $140M.
- He cuts his FY17 and FY18 EPS estimates to $1.74 and $1.88, respectively, from $1.84 and $2.10 previously, and maintains a Neutral rating.
- Shares are down 9.7%.