Quick Win By the Algorithm: HRB Rises 18%

Quick Win By the Algorithm

On March 8, 2017, the I Know First algorithm had predicted a bullish forecast for H&R; Block, Inc. (HRB). HRB had a signal of 1.68 and a predictability of 0.15. Therefore, in accordance with the Quick Win By the Algorithm, the company reported gain of 18.29% in just 7 days.

Quick Win By The Algorithm

H&R; Block, Inc., through its subsidiaries, provides tax preparation and other services to the general public primarily in the United States, Canada, and Australia. The company offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or by franchisees; and develops and markets do-it-yourself (DIY) online income tax preparation software solutions. It also provides a range of online tax services, including preparation of federal and state income tax returns; review of tax returns by a tax professional; access to tax tips, advice, and tax-related news; use of calculators for tax planning; and error checking and electronic filing.

 

On March 7, HRB released U.S. tax return volume through February 28 and its financial results for the fiscal 2017 third quarter, which ended January 31, 2017.  The company typically reports a fiscal third quarter operating loss due to the seasonality of its tax business.

Revenues declined $23 million due to the delayed tax season, while total operating expenses declined $18 million primarily due to cost reduction efforts, which led to lower compensation and benefits and marketing costs.

H&R Block return volume outperformed industry results when compared to IRS data reported through February 24.  Both the Assisted and DIY categories realized market share gains.  In the Assisted category, H&R Block outperformed the industry with a decline of 8% compared to the IRS reported decline of 13%.  In the DIY category, H&R Block outperformed the industry with a decline of 5% compared to the IRS reported decline of 8%.  Overall, industry and company volume is expected to improve during the second half of the tax season.

“We are delivering what we promised in December. Through aggressive Assisted and DIY offers, we are achieving our goal of new client growth and I’m pleased that we gained market share in both the Assisted and DIY tax preparation categories in the first half of the tax season,” said Bill Cobb, H&R Block’s President and Chief Executive Officer.

On March 8, I Know First Subscribers received this bullish forecast on HRB.

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. The algorithm is used for intra-day trading, the predictability tends to become stronger with forecasts over longer time-horizons. Forecasts such as the 1-month, 3-month and 1-year.

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