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

With a diverse portfolio of products and services, H&R Block, Inc.HRB 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!

Wall Street's Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

H&R Block, Inc. (HRB): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics

Investing Stocks

Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More