By Micah Maidenberg
H&R Block Inc. said the decision by federal officials to move the U.S. tax-filing deadline to July 15 from April 15 because of the Covid-19 pandemic resulted in lower revenue and a sharply smaller profit for its fiscal fourth quarter.
The tax-preparation company on Tuesday reported $1.81 billion in revenue for its quarter that ended April 30, down from $2.33 billion the year earlier.
Analysts expected $1.84 billion for the latest period, according to FactSet.
H&R Block said net income fell to $460.4 million, or $2.37 a share, from $877.9 million, or $4.29 a share, the year earlier. Earnings were hurt by an impairment of $106 million in the quarter against goodwill tied to Wave, a financial-services company it purchased last year.
"The Covid-19 pandemic and its effect on small businesses has impacted Wave's client volumes and revenues," H&R Block said.
In March, the U.S. Treasury Department and Internal Revenue Service extended the tax-filing deadline as consumers in many parts of the country stayed at home to slow the spread of the virus and the economy shut down.
H&R Block's quarter that ends April 30 is its most important for financial results, as the company generates the bulk of its business during the period due to the typical timing of when people in the U.S. file their taxes.
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