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Here's why H&R Block stock jumped after tax season including IRS snafu

Meet H&R Block’s new CEO

He is Jeff Jones, who walked out of Uber's tumultuous executive suite in March 2017. He talked with The Star about Block and coming to Kansas City, even before he could tell friends here that he had taken the job.
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He is Jeff Jones, who walked out of Uber's tumultuous executive suite in March 2017. He talked with The Star about Block and coming to Kansas City, even before he could tell friends here that he had taken the job.

Strong tax season results drove shares of H&R Block up more than 4.5 percent Wednesday.

Shares gained $1.29 in morning trading, a 4.8 percent increase, to $27.97.

Kansas City-based Block said Tuesday after markets had closed that it handled 2.6 percent more tax returns in the tax season that ended April 18 than it had a year earlier. Technical problems at the Internal Revenue Service had unexpectedly extended the tax season by a day this year.

CEO Jeff Jones said the company's goal was to improve trends in client totals, and that happened in both its do-it-yourself business and its network of stores.

For the year, Block handled 19.873 million U.S. tax returns, up from 19.372 million a year ago. Digital returns, prepared on Block desktop software and online programs, increased 7.9 percent.

Assisted returns through HR Block offices declined 0.6 percent, which the company considered an improvement over the previous year when declines were larger.

Block's report did not include financial results. Those will wait until June 12.

"Based on these results, we expect to deliver revenue growth and margins consistent with our previously provided outlook,” Jones said in the company's announcement Tuesday.

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