H&R Block Inc (NYSE:HRB), the tax services provider reported an adjusted loss of 55 cents per share for its latest quarter, 2 cents a share wider than anticipated, but analysts at Wedbush maintained a neutral rating on Wednesday.
The firm’s revenue also fell below forecasts as Block had fewer customers and was also hurt by currency fluctuations.
But Wedbush maintained its share price target at $25 and said “We believe HRB will curtail declines in volumes by reallocating resources in the assisted and DIY businesses.”
Of today’s earnings results Wedbush said that they were mostly in line during the off-season quarter.
“We believe the company will adapt a refund advance product for the upcoming tax season in the assisted channel and match TurboTax fully free offer in digital. Although the scope of those additions will be critical to the balance of volume and margin, we believe these changes are inevitable. Management reaffirmed its goal of reviving customer growth and their willingness to make significant changes to the product and its delivery in order to accomplish that goal,” said Wedbush in a note.
It added: “We believe the buyback rate in the quarter of two million shares is sustainable going forward.”
H&R shares closed down 10.5% at $21.66 on Wednesday.