Zacks Upgrades Block Following Earnings

Meanwhile Zacks posted on its analysts blog that it is upgrading its rating on H&R Block Inc., Kansas City, Mo., from sell to hold following the release of its fourth quarter financial results. "Although the fallout from the mortgage business implosion will likely be felt for some time to come, and we continue to have significant concerns regarding other aspects of HRB's business, we believe that negative and positive aspects of the company's outlook are now roughly balanced," Zacks said. Block had net earnings for the fourth fiscal quarter ended April 30, 2008 of $543.6 million ($1.66 per share). The company reported a loss from discontinued operations of $147.6 million (-$0.45 per share) related to its exit from the subprime mortgage business. Block shut the origination business of Option One Mortgage in December 2007 and sold its mortgage servicing business on April 30.