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H&R Block (HRB) Q2 Loss Narrower, Revenues Beat Estimates

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With a diverse portfolio of products and services, H&R Block, Inc. (HRB - Free Report) is a premier player in the consumer tax services market. Headquartered in Kansas City, MO, the company provides tax, accounting and business consulting services and products across the globe.

After the divestiture of H&R Block Bank, HRB has been diligently focusing on improving the efficiencies and capabilities of its core businesses. The company made several enhancements to its online digital tax software to improve monetization and conversion. HRB has also forayed into the health insurance brokerage business through collaboration with GoHealth to create additional revenue-generating opportunities. However, HRB continues to face unfavorable foreign currency translation and employment-related lawsuits. Moreover, its debt-to-equity ratio compares unfavorably with the sector average.

In the last four trailing quarters, HRB has reported a positive average earnings surprise of 11.4%, beating earnings estimates thrice. With rising operating costs and adverse currency translation effects gradually shrinking margins, investors have been eagerly waiting for the company’s latest earnings report.

Currently, HRB has a Zacks Rank #3 (Hold), but that could definitely change following second-quarter fiscal 2018 earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here. We have highlighted some of the key stats from this just-revealed announcement below.

Earnings: HRB reported narrower loss. The Zacks Consensus Estimate called for loss of 73 cents per share, while the company reported loss of 71 cents from continuing operations.

H&R Block, Inc. Price and EPS Surprise

 

H&R Block, Inc. Price and EPS Surprise | H&R Block, Inc. Quote

Revenues: Revenues beat. HRB posted revenues of $140.9 million, compared to the Zacks Consensus Estimate of $128 million.

Key Stats to Note: HRB expects to continue with improved financial performance in the remainder of fiscal 2018 with increase in client trajectory.

Stock Price: Despite a narrower loss, share prices fell in the pre-market trading following the release at the time of this write-up as investors probably expected a better performance from the company.

Check back for our full write up on this HRB earnings report later!

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