H&R Block Inc. posted its first quarterly earnings profit since 2006 in the fourth quarter that ended April 30.
Net income jumped to $543.6 million or $1.66 a share, compared with a loss of $85.6 million, or 26 cents, in the year-ago period.
The Kansas City, Mo.-based tax services provider credited the gain to its exit from the subprime-mortgage business, which had caused more than $1 billion in previous losses.
Earnings from continuing operations were up 21% to $691.1 million, or $2.11 per share, from the $591.2 million, or $1.81 per share, reported for the fourth quarter of 2007.
In April, H&R Block sold its mortgage servicing unit to WL Ross & Co. LLC of New York.
“We are prudently managing all our businesses for better performance and improved margins,” Alan Bennett, H&R Block’s interim chief executive officer, said in a statement.
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