H&R Block Inc. (NYSE: HRB) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Thursday. Despite a very weak third quarter, we must keep in mind that this company’s fiscal fourth quarter is historically its strongest, as a majority of this company’s revenues and all of its fiscal 2016 earnings will occur at this time.

Consensus estimates from Thomson Reuters call for $3.15 in earnings per share (EPS) on $2.28 billion in revenue. In the same period of last year, the company posted EPS of $2.69 and $2.30 billion in revenue.

The posted third-quarter decline in revenues was primarily driven lower client volumes in its U.S.-assisted tax offices, the impact of the divestiture of H&R Block Bank and the impact of foreign currency exchange rate fluctuations. The decline in volume was offset by improved pricing and form mix in both assisted and DIY categories.

Management previously noted that this tax season has been marked by the continued impact of fraud on the industry, the continuing trend of taxpayers filing their returns later in the season, and tax refunds taking longer to process. Significant initiatives by both federal and state governments to combat tax fraud are creating material changes in the industry. While the firm believes that there are additional efforts that need to be taken, such as EITC form parity and minimum standards for tax return preparers, H&R Block fully supports the efforts being made this season.

A few analysts weighed in on the stock prior to the release of the earnings report:

• Oppenheimer reiterated a Hold rating.
• BTIG Research reiterated a Neutral rating.
• Piper Jaffray reiterated an Overweight rating with a $31 price target.
• Sterne Agee CRT initiated coverage with a Neutral rating and a $33 price target.

So far in 2016, H&R Block has underperformed the broad markets, with the stock down 35%. Over the past 52 weeks, the stock is down nearly 30%.

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Shares of H&R Block traded down 1.8% to $21.14 Wednesday afternoon. The stock has a consensus analyst price target of $30.33 and a 52-week trading range of $19.18 to $37.53.

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