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H&R Block's (HRB) Q4 Earnings Beat Estimates, Increase YoY

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H&R Block, Inc. (HRB - Free Report)  reported better-than-expected fourth-quarter fiscal 2022 results.

Adjusted earnings per share of $1.43 beat the Zacks Consensus Estimate by 13.5% and surged 2.9% year over year. Revenues of $1 billion surpassed the consensus estimate by 6.2% and were up slightly year over year.

Shares of H&R Block have gained 53.7% over the past year against a 19.2% decline in the industry it belongs to.

Other Quarterly Numbers

EBITDA declined 3.7% to $347 million. Total operating expenses of $738 million were up 1.8% year over year.

H&R Block exited the quarter with a cash and cash equivalents balance of $885 million compared with $1 billion at the end of the prior quarter. Long-term debt was $1.5 billion, flat with the previous quarter’s figure.

H&R Block generated $435 million of cash in operating activities while capex was $9.2 million. HRB paid out dividends of $43 million in the quarter.

2022 Outlook

H&R Block expects revenues in the range of $3.353-$3.585 billion, the midpoint ($3.469 billion) being below the current Zacks Consensus Estimate of $3.5 billion.

Adjusted EPS is expected to be between $3.7 and $3.95, above the current Zacks Consensus Estimate of $3.65.

EBITDA is expected between $915 million and $950 million. Effective tax rate is expected to be around 22%.

H&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

H&R Block, Inc. Price, Consensus and EPS Surprise H&R Block, Inc. Price, Consensus and EPS Surprise

H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote

Performances of Some Other Service Providers

Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. 

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.


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