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H&R Block, Inc. (HRB - Free Report) reported mixed first-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings per share of 99 cents beat the Zacks Consensus Estimate by 4.8% but declined 26.9% year over year.
Revenues of $180 million lagged the consensus estimate by 10.1% and were down 6.6% year over year. The decline in the top line was due to the Advanced Child Tax Credit loaded onto Emerald Cards last year, resulting in a $16.6 million impact in the quarter. The Company experienced a negative impact of $4 million from foreign exchange in its Canadian and Australian businesses. The decrease was partially offset by growth at Wave and an upsurge in net average charge in the Assisted business.
Other Quarterly Numbers
Pretax loss was up 24 million year over year to $221.3 million. Total operating expenses of $389.1 million were up 6% year over year.
H&R Block exited the quarter with a cash and cash equivalents balance of $322.8 million compared with $885 million at the end of the prior quarter. Long-term debt was $1.5 billion, flat with the previous quarter figure.
H&R Block used $321.7 million of cash in operating activities while capex was $16.2 million. HRB paid out dividends of $43 million in the quarter.
2023 Outlook
H&R Block expects revenues in the range of $3.535-$3.585 billion, the midpoint ($3.56 billion) being slightly above the current Zacks Consensus Estimate of $3.55 billion.
Adjusted EPS is expected to be between $3.7 and $3.95, the midpoint ($3.825) being slightly above the current Zacks Consensus Estimate of $3.81. EBITDA is expected between $915 million and $950 million. The effective tax rate is expected to be around 22%.
Shares of H&R Block have gained 81.8% over the past year against a 21% decline of the industry it belongs to.
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but declined 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and increased 1.8% year over year.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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H&R Block's (HRB) Q1 Earnings Beat Estimates, Decline Y/Y
H&R Block, Inc. (HRB - Free Report) reported mixed first-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings per share of 99 cents beat the Zacks Consensus Estimate by 4.8% but declined 26.9% year over year.
Revenues of $180 million lagged the consensus estimate by 10.1% and were down 6.6% year over year. The decline in the top line was due to the Advanced Child Tax Credit loaded onto Emerald Cards last year, resulting in a $16.6 million impact in the quarter. The Company experienced a negative impact of $4 million from foreign exchange in its Canadian and Australian businesses. The decrease was partially offset by growth at Wave and an upsurge in net average charge in the Assisted business.
Other Quarterly Numbers
Pretax loss was up 24 million year over year to $221.3 million. Total operating expenses of $389.1 million were up 6% year over year.
H&R Block exited the quarter with a cash and cash equivalents balance of $322.8 million compared with $885 million at the end of the prior quarter. Long-term debt was $1.5 billion, flat with the previous quarter figure.
H&R Block used $321.7 million of cash in operating activities while capex was $16.2 million. HRB paid out dividends of $43 million in the quarter.
2023 Outlook
H&R Block expects revenues in the range of $3.535-$3.585 billion, the midpoint ($3.56 billion) being slightly above the current Zacks Consensus Estimate of $3.55 billion.
Adjusted EPS is expected to be between $3.7 and $3.95, the midpoint ($3.825) being slightly above the current Zacks Consensus Estimate of $3.81. EBITDA is expected between $915 million and $950 million. The effective tax rate is expected to be around 22%.
Shares of H&R Block have gained 81.8% over the past year against a 21% decline of the industry it belongs to.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote
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.
Performances of Some Other Service Providers
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but declined 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and increased 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.