H&R Block Inc., the biggest U.S. tax preparer, rose the most since April after posting fiscal fourth-quarter profit and revenue that beat analysts’ estimates.
H&R Block gained 5 percent to $32.28 at 9:36 a.m. in New York, the top performer in the Standard & Poor’s 500 Index. The shares have rallied 11 percent this year, outpacing the 5.2 percent advance of the benchmark index.
Net income for the period ended April 30 climbed 35 percent to $929.1 million, or $3.36 a share, from $688.9 million or $2.51, a year earlier, the Kansas City, Missouri-based company said today in a statement. The average estimate of eight analysts surveyed by Bloomberg was for adjusted profit of $3.23 a share.
H&R Block, led by Chief Executive Officer Bill Cobb, agreed to sell its banking unit in April to exit Federal Reserve oversight and focus on tax preparation. Quarterly revenue climbed 16 percent to $2.56 billion from a year earlier even as the company handled 2.6 percent fewer tax returns in the U.S. during the 2014 filing season, according to the statement. The average estimate of five analysts surveyed by Bloomberg was for revenue of $2.49 billion.