PARSIPPANY, N.J. – Tax preparer Jackson Hewitt Tax Service Inc. (JTX) said Thursday its fourth-quarter profit rose 4 percent on increased sales of prepared tax returns and financial products.
The company also raised its quarterly dividend to 8 cents from 7 cents, payable on July 15 to shareholders of record from June 28.
Jackson Hewitt said its quarterly income grew to $54.6 million, or $1.44 per share, from $52.4 million, or $1.40 per share, a year ago. Adjusting for the company's agreement with Santa Barbara Bank & Trust (search) regarding refund anticipation loans, Jackson Hewitt reported earnings of $51 million, or $1.35 per share, for the quarter.
Revenue rose 8 percent to $143.1 million from $132.8 million last year.
Analysts surveyed by Thomson Financial expected earnings per share of $1.38 on revenue of $137.6 million.
For the full year, the company earned $50 million, or $1.32 per share, up from $43 million, or $1.15 per share, last year. Jackson Hewitt reported adjusted earnings of $45.8 million, or $1.21 per share, for the year. Results for the year included a $4.5 million stock-based compensation charge.
Revenue rose 13 percent to $232.5 million from $205.6 million last year, driven by a 6 percent increase in prepared tax returns to 3.3 million and an 11 percent increase in the number of financial products to 3.1 million. Analysts forecast earnings per share of $1.26 on revenue of $225.7 million.
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