Back to top

Image: Bigstock

H&R Block Gears Up to Report Q1 Earnings: What Should You Know?

Read MoreHide Full Article

H&R Block, Inc. (HRB - Free Report) is scheduled to report its first-quarter fiscal 2025 results on Nov. 7, after market close.

See Zacks Earnings Calendar to stay ahead of market-making news.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the past four quarters, the surprise being 10.8%, on average.

H&R Block, Inc. Price and EPS Surprise

 

H&R Block, Inc. Price and EPS Surprise

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

HRB’s Q1 Expectations

The Zacks Consensus Estimate for revenues is pegged at $188.8 million, indicating a 2.7% increase from the year-ago quarter’s actual.

We expect HRB’s DIY business to have been driven by growth in paid clients, NETFILE Access Code (“NAC”) and strength in its Tax Pro Review product. The company is likely to have witnessed a surge in client conversion and strong customer scores due to the launch of AI Tax Assist. Growth in higher value clients and NAC, and positive trends in Assisted small business tax are anticipated to have fuelled HRB’s Assisted business.

In the quarter, HRB is believed to have continued progressing with Block Horizons 2025 — a five-year strategy targeting using human expertise and technological infrastructure to drive innovation. This plan focuses on building strong relationships with small businesses via Wave and Block Advisors; developing Emerald Card as a consumer-centric, mobile-first solution for the underbanked; and making taxation faster and more personalized by integrating human expertise with digital tools.

The consensus mark for loss is pegged at $1.1 per share, whereas it incurred a loss of $1 in the year-ago quarter.

What Our Model Says About HRB

Our proven model does not conclusively predict an earnings beat for H&R Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

H&R Block has an Earnings ESP of 0.00% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season:

Corpay, Inc. (CPAY - Free Report) : The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $1 billion, indicating an increase of 5.8% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $5 per share, suggesting a 10.9% increase from the year-ago quarter’s reported number. CPAY beat the consensus estimate in two of the past four quarters, met in one instance and missed once, with an average beat of 0.2%.

CPAY has an Earnings ESP of +0.14% and a Zacks Rank of 3 at present. The company is scheduled to declare its third-quarter 2024 results on Nov. 7.

Paysafe Limited (PSFE - Free Report) : The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $424.5 million, indicating growth of 7.1% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 58 cents per share, suggesting a 1.8% rise from the year-ago quarter’s reported number. PSFE surpassed the consensus estimate in three of the past four quarters and missed once, with an average beat of 29.3%.

PSFE has an Earnings ESP of +5.17% and a Zacks Rank of 3 at present. The company is scheduled to declare its second-quarter fiscal 2025 results on Nov. 11.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


H&R Block, Inc. (HRB) - free report >>

Paysafe Limited (PSFE) - free report >>

Corpay, Inc. (CPAY) - free report >>

Published in