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Blucora, Inc. (BCOR) provides technology-enabled financial solutions to consumers, small business owners, tax professionals, financial advisors, and certified public accounting firms in the United States. 
The company operates through two segments, Wealth Management and Tax Preparation.
The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors.
The Tax Preparation segment provides digital do-it-yourself tax preparation solutions through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement plan services, and e-filing services. This segment also offers professional tax preparer software that allows professional tax preparers to prepare and file individual and business returns.
On November 1, BCOR reported a 3rd Quarter September 2022 loss of $0.29 per share on revenue of $171.7 million. The consensus estimate was a loss of $0.30 per share on revenue of $165.1 million.
The company said it expects 2022 non-GAAP earnings of $1.75 to $1.84 per share on revenue of $909.0 million to $915.0 million. The company's previous guidance was earnings of $1.71 to $1.90 per share on revenue of $892.5 million to $916.0 million and the current consensus earnings estimate is $1.83 per share on revenue of $903.18 million for the year ending December 31, 2022.
Shares have formed a bullish "flag" following the news that the sale of the tax accounting business to Cinven for $720 million in cash brings in after-tax net cash proceeds of approximately $620 million. Further, Blucora will return between $400 million to $450 million of that to shareholders through stock repurchases, starting with a modified Dutch auction tender offer in the first quarter of 2023. Higher share prices are expected.
Entry Point: $25.50
Stop Loss: $23.00
Trading Range: $15.10 to $27.50
Target Price: $28.00
