On April 15, I wrote that it was probably time to dump H&R Block given its tendency to see its stock price drop this time of year, regardless of the report. Last week's news about H&R Block shouldn't be surprising, and I think that is why the stock bounced back on Friday. However, the news from Intuit is surprising, which is why it dropped so dramatically.
Take a look at the following charts. H&R Block does not display the growth and increase you want to see in sales, net income or EPS. Meanwhile over the last decade, Intuit has had steady and consistent improvements in each area.
If you bought H&R Block before January, I congratulate you. Take those gains, along with your tax refund (and the $25 gift card you got from H&R Block if you experienced delays) and enjoy yourself! As for Intuit, it may be a good time to buy on the overreaction of last week.
Comments (2)
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Your #'s are inaccurate.... Intuit had projected Turbo Tax filings to increase by 10%, but instead saw a 4% increase. (IRS Filings were down 2%).
"H&R Block did report that its online filings increased by 10%, which is why Intuit's Turbo Tax saw declining numbers"...that statement is just wrong for so many reasons...
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The #'s I listed are accurate according to the sources I linked to. I'd be happy to correct if you have the source. I don't believe that I am wrong for so many reasons as you said. Of course the HRB online and Turbo Tax are not a 1 for 1 inverse, but if HRB saw an increase, that is a major driver of why Intuit did not have the success they thought they would have.
