On Jun 30, 2014, shares of JTH Holding, Inc. (TAX - Free Report) scaled a new 52-week high of $34.21. With about 0.13 million shares exchanging hands in the last trading session, shares gained 0.9% to close at $33.31. The momentum was driven by solid fiscal fourth-quarter 2014 results. The year-to-date return from the stock came in at about 37.7%, which is much ahead of the Nasdaq’s return of 5.5%.
JTH Holding delivered net income of $2.18 per share in the fiscal fourth quarter, improving 8% year over year on higher top line. The improvement came on the back of higher revenues that increased 11% on higher franchise fees, royalties and advertising fees, financial products, interest income and tax preparation fees.
Though expenses escalated, a higher magnitude of increase in revenues resulted in a 12% rise in operating income.
JTH Holding’s fiscal top and bottom line also improved year over year. Shares have gained about 18% since it reported it earnings results on Jun 18.
JTH Holding served 2.4 million customers in the U.S and Canada, reflecting an increase of 6% in fiscal 2014. Tax returns prepared in offices in the U.S. increased 5%, better than the IRS reported growth rate of 0.7%, with average net fee increasing 6%.
JTH Holding is also strengthening its balance sheet. While cash balance improved 142%, debt balance lowered 11%. Cash from operations also improved 53%. Banking on higher cash flows, the company repurchased 0.8 million shares in June enhancing shareholder value.
Riding on its strong performance, the Zacks Consensus Estimate for fiscal 2015 of this Zacks Rank #2 (Buy) business service provider moved north by 3.3% and is currently pegged at $1.86. It also translates into a year-over-year improvement of 2.08%. The expected long-term growth rate for the stock is 20%.
Other Stocks to Consider
Some other notable multi line insurers are Avis Budget Group, Inc. (CAR - Free Report) , comScore, Inc. and ExamWorks Group, Inc. . While Avis Budget sports a Zacks Rank #1 (Strong Buy), comScore and ExamWorks Group bear the same Zacks Rank as JTH Holding.