PARSIPPANY, N.J. (AP) -- A disappointing 2008 tax-filing season has dented Jackson Hewitt Tax Service Inc.'s profit, the tax-return preparer said Wednesday.
Jackson Hewitt does not believe it met its target for profit and revenue this year because the growth the company expected did not materialize.
With 6,800 franchise offices, Jackson Hewitt charges fees for helping people file their tax returns. This tax season, Jackson Hewitt prepared 3.45 million tax returns, a decline of 5.3 percent.
Excluding returns filed solely to get rebates from the federal government's stimulus plan, tax returns were down 7.1 percent.
Fees per tax return were flat, compared with expectations for growth of 1 percent to 2 percent.
"The 2008 tax season turned out to be a difficult one for our company," Chief Executive Michael C. Yerington said in a statement.
Jackson Hewitt now expects to earn $1.34 per share to $1.49 per share for fiscal 2008, which ended in April, compared with the previous forecast for profit of $1.48 per share to $1.60 per share. Analysts polled by Thomson Financial expect profit of $1.51 per share.
After a "particularly disappointing" season, Yerington said the company needs to offer a better preseason product, revamp its marketing programs and broaden distribution arrangements and partnerships.
Jackson Hewitt's stock tumbled $1.40, or 9.4 percent, to $13.49 in after-hours trading Wednesday. The stock closed at $14.89.