BTIG Keeps 'Neutral' Rating on H&R Block (HRB) Following Q4 Report; Says Management Direction Remains 'Vague'
BTIG affirms H&R Block (NYSE: HRB) with a Neutral rating following Q4 results and boosted dividend, as announced Thursday night.
Analyst Mark Palmer commented, While H&R Block yesterday after the market close reported a modest earnings beat and triggered a relief rally during extended trading, management's list of anticipated remedies to the company's string of annual losses in client count - now at four years - provided vague directional promises about using the savings from expense reductions to fund initiatives aimed at boosting its client count, but little in the way of detail to assure investors concerned that the weak operating performance would persist.
On reaffirming the Neutral rating, Palmer said, ...we believe uncertainty about the company's ability to attract more clients given competitors' offerings of refund anticipation loans (RALs) and questions about the impact of fraud prevention measures are likely to continue to cap share price appreciation. Moreover, management's unwillingness to provide details about its initiatives to drive increased tax preparation volumes in 2017 until HRB's investor day in December represents another source of uncertainty that will remain for another half a year.
For an analyst ratings summary and ratings history on H&R Block click here. For more ratings news on H&R Block click here.