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H&R Block, Inc. (HRB - Free Report) currently benefits from its five-year strategic plan as well as investor-friendly steps.
HRB 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 inched up 2.9% year over year. Revenues of $1 billion surpassed the consensus estimate by 6.2% and rose slightly year over year.
Shares of HRB have surged 88.1% in the past year against a 15.4% fall of the industry it belongs to.
Image Source: Zacks Investment Research
How is H&R Block Faring?
H&R Block has a five-year strategy in place, known as Block Horizons 2025. The strategy is focused on using human expertise and technological infrastructure to drive innovation. It aims to build strong relationships with small businesses through Wave and Block Advisors, develop Emerald Card as a consumer-centric, mobile-first solution for the underbanked and make taxation faster and more personalized by integrating human expertise with digital tools.
Block Horizons is expected to help HRB deliver sustainable revenues and growth in the operating profit, improve return on investments, and maintain a strong balance sheet and liquidity position.
H&R Block has a consistent track record of returning capital to its shareholders through dividends and share repurchases. HRB paid out $195.1 million, $204.9 million and $205.5 million as dividends in the fiscal years 2021, 2020 and 2019, respectively. It repurchased shares worth $191.3 million, $256.2 million and $189.9 million in 2021, 2020 and 2019 each. Such moves substantiate HRB’s commitment to creating value for its shareholders and instilling confidence in its business. These also instill investors’ confidence in the stock and augment its earnings per share.
HRB’s current ratio at the end of the June quarter stands at 1.39, lower than the current ratio of 2.12, reported at the end of the prior-year quarter. The decreasing current ratio is not desirable as it indicates that H&R Block may have problems fulfilling its short-term obligations.
Avis Budget sports a Zacks Rank of 1 at present. CAR has an earnings growth rate of 108.4% for 2022. Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%. Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International is Zacks #1 Ranked, currently. CRAI has a long-term earnings growth expectation of 14.3%. CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.
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Investor-Aiding Steps Boost H&R Block (HRB), Low Liquidity Ails
H&R Block, Inc. (HRB - Free Report) currently benefits from its five-year strategic plan as well as investor-friendly steps.
HRB 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 inched up 2.9% year over year. Revenues of $1 billion surpassed the consensus estimate by 6.2% and rose slightly year over year.
Shares of HRB have surged 88.1% in the past year against a 15.4% fall of the industry it belongs to.
Image Source: Zacks Investment Research
How is H&R Block Faring?
H&R Block has a five-year strategy in place, known as Block Horizons 2025. The strategy is focused on using human expertise and technological infrastructure to drive innovation. It aims to build strong relationships with small businesses through Wave and Block Advisors, develop Emerald Card as a consumer-centric, mobile-first solution for the underbanked and make taxation faster and more personalized by integrating human expertise with digital tools.
Block Horizons is expected to help HRB deliver sustainable revenues and growth in the operating profit, improve return on investments, and maintain a strong balance sheet and liquidity position.
H&R Block has a consistent track record of returning capital to its shareholders through dividends and share repurchases. HRB paid out $195.1 million, $204.9 million and $205.5 million as dividends in the fiscal years 2021, 2020 and 2019, respectively. It repurchased shares worth $191.3 million, $256.2 million and $189.9 million in 2021, 2020 and 2019 each. Such moves substantiate HRB’s commitment to creating value for its shareholders and instilling confidence in its business. These also instill investors’ confidence in the stock and augment its earnings per share.
HRB’s current ratio at the end of the June quarter stands at 1.39, lower than the current ratio of 2.12, reported at the end of the prior-year quarter. The decreasing current ratio is not desirable as it indicates that H&R Block may have problems fulfilling its short-term obligations.
Zacks Rank & Other Key Picks
H&R Block currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Business Services sector can also consider stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank of 1 at present. CAR has an earnings growth rate of 108.4% for 2022.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International is Zacks #1 Ranked, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.