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H&R Block, Inc. (HRB - Free Report) reported impressive fourth-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
HRB’s adjusted earnings (adjusting 8 cents from non-recurring items) of $1.9 per share surpassed the Zacks Consensus Estimate by 10.5% but declined 7.8% from the year-ago quarter. Revenues of $1.1 billion beat the consensus estimate by 2.6% and increased 3% on a year-over-year basis.
H&R Block’s shares have gained 48.2% over the past year, significantly outperforming 11.3% growth of the industry it belongs to and the 23.8% increase of the Zacks S&P 500.
Revenues from U.S. tax preparation and related services were $929.3 million, up 1.8% from fourth-quarter fiscal 2023.Growth in paid client and net average charge, and strength in the Tax Pro Review product benefited this segment.The launch of AI Tax Assist, which resulted in higher new client conversion, aided this segment as well. Revenues from Financial services were $18.8 million, up 14.2% from the year-ago quarter.
EBITDA was $396.8 million, which decreased 6.2% on a year-over-year basis. H&R Block exited the quarter with cash and cash equivalents of $1.1 billion compared with $794.61 million at the end of the preceding quarter. Long-term debt was $1.49 billion, flat with the previous quarter.
The company generated $300.6 billion of cash from operating activities while capex utilized was $9.8 million.
Outlook
For fiscal 2025, H&R Block raised its revenue guidance to $3.69-$3.75 billion from the earlier provided $3.53-$3.59 billion. The Zacks Consensus Estimate for revenues is pegged at $3.58 billion, which is lower than the revised guided range.
The company hiked its adjusted earnings per share (EPS) guidance to $5.15-$5.35 from the preceding quarter’s range of $4.10-$4.30. The consensus estimate for EPS is pegged at $4.29, which is lower than the revised guided range.
HRB now expects EBITDA to be in the range of $975-$1.02 billion, up from the view of $930-$965 million provided in third-quarter fiscal 2024. The effective tax rate is now expected to be approximately 13%, down from the previous quarter’s anticipated range of 21-22%.
Robert Half International Inc. (RHI - Free Report) reported lower-than-expected second-quarter results.
RHI’s quarterly earnings of 66 cents per share missed the Zacks Consensus Estimate by 7% and declined 34% year over year. Revenues of $1.47 billion missed the consensus mark by 1.7% and decreased 10.2% year over year.
NSP’s adjusted earnings (excluding 38 cents from non-recurring items) of 86 cents per share outpaced the Zacks Consensus Estimate by 17.8% and increased 34.4% year over year. Revenues of $1.6 billion missed the consensus estimate by a slight margin but increased 1.3% from the year-ago quarter.
Gartner, Inc. (IT - Free Report) reported better-than-expected second-quarter results.
IT’s adjusted earnings (excluding 28 cents from non-recurring items) of $3.22 per share beat the Zacks Consensus Estimate by 6.3% and increased 13% from the year-ago quarter. Revenues of $1.6 billion beat the consensus estimate marginally and improved 6.1% year over year.
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H&R Block (HRB) Surpasses Q4 Earnings & Revenue Estimates
H&R Block, Inc. (HRB - Free Report) reported impressive fourth-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
HRB’s adjusted earnings (adjusting 8 cents from non-recurring items) of $1.9 per share surpassed the Zacks Consensus Estimate by 10.5% but declined 7.8% from the year-ago quarter. Revenues of $1.1 billion beat the consensus estimate by 2.6% and increased 3% on a year-over-year basis.
H&R Block’s shares have gained 48.2% over the past year, significantly outperforming 11.3% growth of the industry it belongs to and the 23.8% increase of the Zacks S&P 500.
H&R Block, Inc. Price and EPS Surprise
H&R Block, Inc. price-eps-surprise | H&R Block, Inc. Quote
Other Quarterly Numbers
Revenues from U.S. tax preparation and related services were $929.3 million, up 1.8% from fourth-quarter fiscal 2023.Growth in paid client and net average charge, and strength in the Tax Pro Review product benefited this segment.The launch of AI Tax Assist, which resulted in higher new client conversion, aided this segment as well. Revenues from Financial services were $18.8 million, up 14.2% from the year-ago quarter.
EBITDA was $396.8 million, which decreased 6.2% on a year-over-year basis. H&R Block exited the quarter with cash and cash equivalents of $1.1 billion compared with $794.61 million at the end of the preceding quarter. Long-term debt was $1.49 billion, flat with the previous quarter.
The company generated $300.6 billion of cash from operating activities while capex utilized was $9.8 million.
Outlook
For fiscal 2025, H&R Block raised its revenue guidance to $3.69-$3.75 billion from the earlier provided $3.53-$3.59 billion. The Zacks Consensus Estimate for revenues is pegged at $3.58 billion, which is lower than the revised guided range.
The company hiked its adjusted earnings per share (EPS) guidance to $5.15-$5.35 from the preceding quarter’s range of $4.10-$4.30. The consensus estimate for EPS is pegged at $4.29, which is lower than the revised guided range.
HRB now expects EBITDA to be in the range of $975-$1.02 billion, up from the view of $930-$965 million provided in third-quarter fiscal 2024. The effective tax rate is now expected to be approximately 13%, down from the previous quarter’s anticipated range of 21-22%.
H&R Block currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported lower-than-expected second-quarter results.
RHI’s quarterly earnings of 66 cents per share missed the Zacks Consensus Estimate by 7% and declined 34% year over year. Revenues of $1.47 billion missed the consensus mark by 1.7% and decreased 10.2% year over year.
Insperity, Inc. (NSP - Free Report) reported mixed second-quarter 2024 results.
NSP’s adjusted earnings (excluding 38 cents from non-recurring items) of 86 cents per share outpaced the Zacks Consensus Estimate by 17.8% and increased 34.4% year over year. Revenues of $1.6 billion missed the consensus estimate by a slight margin but increased 1.3% from the year-ago quarter.
Gartner, Inc. (IT - Free Report) reported better-than-expected second-quarter results.
IT’s adjusted earnings (excluding 28 cents from non-recurring items) of $3.22 per share beat the Zacks Consensus Estimate by 6.3% and increased 13% from the year-ago quarter. Revenues of $1.6 billion beat the consensus estimate marginally and improved 6.1% year over year.