H&R Block (NYSE:HRB) is expected to report Q4 earnings on Monday, June 30, after market close, with a conference call scheduled for Tuesday July 1 at 8 a.m. ET.
Analysts are looking for a profit of $2.03 on revenue of $2.5B. The consensus range is $1.97 to $2.08 for EPS, and revenue of $2.45B to $2.56B, according to First Call.
Oppenheimer believes H&R Block has shown several catalysts over the past few months, most importantly the sale of its mortgage business. The firm believes the company's strong 2008 tax season will lead to future growth, and they think the stock can appreciate 20%+, as catalysts are not yet fully reflected in the stock.
On June 23, the New York Post reported that H&R Block, which agreed not to foreclose on any Massachusetts mortgages until at least July 14, could be forced to take hundreds of millions of dollars in writedowns if Massachusetts Attorney General Martha Coakley proves the tax preparation giant used predatory lending practices to sell over 30,000 mortgages in the state between 2004 and 2007. Soleil views the recent weakness from the lawsuit as a buying opportunity. On May 12, the tax preparer reported its net tax preparation fees grew 8.9% to nearly $2.8B.