H&R Block, Inc. HRB reported a wider-than-expected loss in the second quarter of fiscal 2025 results.
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HRB reported an adjusted loss (adjusting 7 cents from non-recurring items) of $1.73 per share, wider than the Zacks Consensus Estimate for a loss of $1.53 per share and a year-ago reported loss of $1.27 per share. Revenues of $179.1 million missed the consensus estimate by 2% and decreased marginally on a year-over-year basis.
H&R Block’s shares have gained 17.9% over the past year, outperforming 5.9% growth of the industry it belongs to.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote
HRB’s Quarterly Numbers
Revenues from U.S. tax preparation and related services were $98.2 million, down 1.2% year over year. Revenues from Financial services were $22.5 million, marking a year-over-year decline of 16.6%. International revenues of $31.8 million increased 7.6%. Wave revenues registered an increase of 14.8% to $26.6 million.
H&R Block exited the quarter with cash and cash equivalents of $320.1 compared with $415.9 million at the end of the preceding quarter. Long-term debt was $1.9 billion compared with $1.5 billion in the previous quarter. The company used $567.1 billion of cash in operating activities while capex was $30.4 million.
HRB’s FY25 Outlook
For fiscal 2025, H&R Block expects revenues of $3.69-$3.75 billion. The mid-point ($3.72 billion) of the guided range is in line with the Zacks Consensus Estimate.
The company expects adjusted earnings per share (EPS) of $5.15-$5.35. The mid-point ($5.25) of the guided range is lower than the Zacks Consensus Estimate for earnings of $5.27. HRB expects EBITDA between $975 million and $1.02 billion. The effective tax rate is expected to be 13%.
H&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots
Gartner, Inc. IT reported better-than-expected fourth-quarter 2024 results.
IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.
Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2025 results.
BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and surged 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.
WM WM reported mixed fourth-quarter 2024 results.
WM’s quarterly adjusted earnings of $1.7 per share missed the consensus mark by 5% and declined 2.3% year over year. Total revenues of $5.9 billion surpassed the consensus mark by a slight margin and grew 13% from the year-ago quarter.
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H&R Block, Inc. (HRB) : Free Stock Analysis Report
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