Diamonds and Dogs
This block is getting larger, at least today. H&R Block (HRB) is jumping 13% intraday while the broader market is taking a hit. The tax preparation and banking service company reported earnings of $701 million, or $3.16 per share, beating estimates by a penny. The company also announced an increased its dividend by 10% to $0.22 per share. Revenue came in at $2.3 billion slightly ahead of expectations. H&R Block has been challenged by a consumer shift toward do-it-yourself tax solutions like Intuit's TurboTax. The company prepared 23.2 million tax returns, down 4.1% year over year. Looking forward to fiscal 2017, the company will implement programs to drive new client growth, spend less on marketing, and reduce headcount.
Going to the Mattresses. The famous Godfather quote is apropos today as Mattress Firm (MFRM) is down 13% following disappointing earnings. The Houston based company reported an adjusted loss of 10 cents a share compared to analyst expectations of a loss of 4 cents a share. Their revenue came in $27.81 million less than what analyst expected. Compared to a year ago the company saw revenue increase 49.2% from new and acquired stores which offset a 1.1% decline in comparable store sales. The company also lowered their full year guidance to $2.25-$2.35 per share compared to their previous one of $2.50 - $2.60 a share. Tough time in the mattress business.
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