May 27, 2010 / 9:52 PM / 9 years ago

UPDATE 1-Jackson Hewitt sees 2010 rev above Street view

* Sees 2010 rev $211 mln-$214 mln vs est $193.1 mln

* Sees 2010 earnings “modestly positive”

* Says 2010 prepared tax returns fell less than expected

May 27 (Reuters) - Jackson Hewitt Tax Service Inc JTX.N forecast 2010 total revenue above Wall Street estimates and said it expects earnings for the fiscal year to be “modestly positive.”

For the year, the troubled tax-preparer expects total revenue of $211 million to $214 million, excluding non-recurring items.

Analysts on average were expecting revenue of $193.1 million, according to Thomson Reuters I/B/E/S.

The company also said the number of tax returns it prepared this year fell less than expected due to better performance in the second half of the tax season.

Jackson Hewitt’s network of franchised and company-owned offices prepared 2.5 million tax returns in 2010, compared with 3.0 million tax returns in 2009.

The 14 percent decline was less than the expected 17 percent to 19 percent decline, the company said.

Based on preliminary tax filing results, the company expects average revenue per tax return for the year to increase 1 percent, meeting the low end of its previously provided range of 1 percent to 2 percent.

On May 3, the company said its lenders agreed to amend its credit agreement, giving it enough cash to fully fund the planned off-season operations, and it reduced its workforce by 15 percent as part of a restructuring plan. [ID:nSGE6420GL]

Shares of Jackson Hewitt, which faces competition from larger rival H&R Block Inc (HRB.N) and financial software maker Intuit Inc (INTU.O), have fallen 58 percent in the last year.

They closed at $1.61 Thursday on the New York Stock Exchange. (Reporting by Jochelle Mendonca in Bangalore; Editing by Maju Samuel)

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