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H&R Block (HRB) to Post Q1 Earnings: What's in the Offing?

H&R Block, Inc. HRB is scheduled to report first-quarter fiscal 2021 results on Sep 1, after the bell. The company delivered an earnings surprise of 0.7% in the past four quarters, on average.

Expectations This Time Around

H&R Block’s financial performance in the to-be-reported quarter is expected to have been driven by digital capabilities which the company increased quickly to cope up with restrictions on working from physical premises. As a result, strength across Tax Pro Review, Tax Pro Go, and Approve Online features are expected to reflect on the company’s top and bottom lines.

The Zacks Consensus Estimate for revenues is pegged at $557.9 million, indicating year-over-year growth of more than 100%. In the fourth-quarter fiscal 2020, revenues of $1.81 billion declined 22.3% year over year.

The consensus estimate for earnings stands at 37 cents, indicating year-over-year increase of more than 100%. In the fourth-quarter fiscal 2020, adjusted earnings of $3.01 per share was down 30.3% year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for H&R Block this season. 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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

H&R Block has an Earnings ESP of -16.67% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

HR Block, Inc. Price and EPS Surprise

HR Block, Inc. Price and EPS Surprise

HR Block, Inc. price-eps-surprise | HR Block, Inc. Quote

Performance of Other Business Services Companies

Equifax EFX reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.

IQVIA Holdings IQV reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.

Robert Half RHI reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.

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

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