H & R Block
ORG
Block H & R Block
H & R Block shares fell $2.18, to $23.01, after it reported disappointing quarterly earnings and a slow start to this year's tax filing season. It said it would restate its profits for the years ended April 2004 and 2005 and would have to restate profit reports for previous quarters. The problem Block has does not indicate it made errors in its own tax returns to state or federal authorities. Block said it had prepared tax returns for 4.1 percent fewer clients than in the same period of last year, although revenues were up because it raised the average fee per client 6.1 percent, to $152.66. Block said its ongoing work to remediate control weaknesses in its corporate tax function led to the restatements, which is estimated will cut 2004 profit by 7 cents a share and 2005 earnings by 2 cents.