Latest news with #HRBlock
Yahoo
13-08-2025
- Business
- Yahoo
H&R Block (NYSE:HRB) Beats Q2 Sales Expectations, Full-Year Sales Guidance is Optimistic
Tax preparation company H&R Block (NYSE:HRB) announced better-than-expected revenue in Q2 CY2025, with sales up 4.6% year on year to $1.11 billion. The company's full-year revenue guidance of $3.89 billion at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $2.27 per share was 19.9% below analysts' consensus estimates. Is now the time to buy H&R Block? Find out in our full research report. H&R Block (HRB) Q2 CY2025 Highlights: Revenue: $1.11 billion vs analyst estimates of $1.09 billion (4.6% year-on-year growth, 1.6% beat) Adjusted EPS: $2.27 vs analyst expectations of $2.83 (19.9% miss) Adjusted EBITDA: $413.2 million vs analyst estimates of $419.1 million (37.2% margin, 1.4% miss) Revenue guidance for the upcoming financial year 2026 is $3.89 billion at the midpoint, beating analyst estimates by 1.5% Adjusted EPS guidance for the upcoming financial year 2026 is $4.93 at the midpoint, missing analyst estimates by 4.3% EBITDA guidance for the upcoming financial year 2026 is $1.03 billion at the midpoint, in line with analyst expectations Operating Margin: 34.5%, up from 33% in the same quarter last year Free Cash Flow Margin: 21.7%, down from 27.4% in the same quarter last year Market Capitalization: $7.29 billion "Fiscal 2025 marked another year of meaningful progress in our transformation journey, with strong revenue growth, disciplined capital allocation, and continued innovation across our client offerings,' said Jeff Jones, president and Chief Executive Officer. Company Overview Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, H&R Block grew its sales at a sluggish 7.3% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis. We note H&R Block is a seasonal business because it generates most of its revenue during tax season, so the charts in our report will look a bit lumpy. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. H&R Block's recent performance shows its demand has slowed as its annualized revenue growth of 4.1% over the last two years was below its five-year trend. We can better understand the company's revenue dynamics by analyzing its three most important segments: Tax Preparation, Financial Services, and Wave Financial, which are 87.8%, 1.4%, and 2.7% of revenue. Over the last two years, H&R Block's Tax Preparation (DIY, assisted, add-on services) and Wave Financial (business software) revenues averaged year-on-year growth of 4.2% and 10%. On the other hand, its Financial Services revenue (Emerald Card, Spruce, interest income) averaged 9% declines. This quarter, H&R Block reported modest year-on-year revenue growth of 4.6% but beat Wall Street's estimates by 1.6%. Looking ahead, sell-side analysts expect revenue to grow 1.7% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin H&R Block's operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 22.3% over the last two years. This profitability was elite for a consumer discretionary business thanks to its efficient cost structure and economies of scale. This quarter, H&R Block generated an operating margin profit margin of 34.5%, up 1.5 percentage points year on year. Because H&R Block is a seasonal business, we prefer to analyze longer-term performance rather than one quarter. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. H&R Block's EPS grew at a remarkable 18.4% compounded annual growth rate over the last five years, higher than its 7.3% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. In Q2, H&R Block reported adjusted EPS of $2.27, up from $1.89 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates, but we care more about long-term adjusted EPS growth than short-term movements. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. Key Takeaways from H&R Block's Q2 Results It was great to see H&R Block's full-year revenue guidance top analysts' expectations. We were also happy its revenue growth accelerated from the same quarter last year, outperforming Wall Street's estimates. On the other hand, its EPS missed due to a one-time tax benefit of $0.50 per share getting pushed to next quarter - including the $0.50, EPS would have only missed by ~2%. Zooming out, we think this was a decent quarter. The stock remained flat at $51.38 immediately following the results. So should you invest in H&R Block right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Effettua l'accesso per consultare il tuo portafoglio
Yahoo
12-08-2025
- Business
- Yahoo
H&R Block (HRB) Q4 Earnings Miss Estimates
H&R Block (HRB) came out with quarterly earnings of $2.27 per share, missing the Zacks Consensus Estimate of $2.81 per share. This compares to earnings of $1.89 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -19.22%. A quarter ago, it was expected that this tax preparer would post earnings of $5.12 per share when it actually produced earnings of $5.38, delivering a surprise of +5.08%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. H&R Block, which belongs to the Zacks Consumer Services - Miscellaneous industry, posted revenues of $1.11 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.74%. This compares to year-ago revenues of $1.06 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. H&R Block shares have added about 3.1% since the beginning of the year versus the S&P 500's gain of 8.4%. What's Next for H&R Block? While H&R Block has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for H&R Block was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$1.26 on $192.92 million in revenues for the coming quarter and $5.12 on $3.81 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Services - Miscellaneous is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Genasys (GNSS), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 14. This developer of directed sound technologies used by the military and police is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +26.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Genasys' revenues are expected to be $9.75 million, up 36% from the year-ago quarter. 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 Genasys Inc. (GNSS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-08-2025
- Business
- Yahoo
Compared to Estimates, H&R Block (HRB) Q4 Earnings: A Look at Key Metrics
H&R Block (HRB) reported $1.11 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 4.6%. EPS of $2.27 for the same period compares to $1.89 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.07 billion, representing a surprise of +3.74%. The company delivered an EPS surprise of -19.22%, with the consensus EPS estimate being $2.81. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how H&R Block performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- U.S. assisted tax preparation: $686.01 million versus the two-analyst average estimate of $673.22 million. The reported number represents a year-over-year change of +5.2%. Revenues- U.S. royalties: $49.57 million versus $47.11 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.2% change. Revenues- U.S. DIY tax preparation: $152.09 million versus the two-analyst average estimate of $126.25 million. The reported number represents a year-over-year change of +13.3%. Revenues- International: $89.89 million versus the two-analyst average estimate of $87.73 million. The reported number represents a year-over-year change of +1.3%. Revenues- Refund Transfers: $22.3 million versus the two-analyst average estimate of $23.35 million. The reported number represents a year-over-year change of +4.4%. Revenues- Tax Identity Shield: $14.97 million versus $14.81 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -9.7% change. Revenues- Peace of Mind Extended Service Plan: $32.46 million compared to the $34.87 million average estimate based on two analysts. The reported number represents a change of -4.5% year over year. Revenues- Interest and fee income on Emerald Advance: $2.36 million versus $5.02 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -44.1% change. Revenues- Other: $18.1 million versus the two-analyst average estimate of $18.93 million. The reported number represents a year-over-year change of -4.3%. Revenues- Wave: $29.54 million versus the two-analyst average estimate of $26.41 million. The reported number represents a year-over-year change of +14.4%. Revenues- Emerald Card and Spruce: $13.72 million compared to the $12.69 million average estimate based on two analysts. The reported number represents a change of -6% year over year. View all Key Company Metrics for H&R Block here>>> Shares of H&R Block have returned -2.7% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
12-08-2025
- Business
- Forbes
HRB Stock: 7.6% Typical Jump After Earnings — Will Q4 Deliver?
H & R Block Inc (NYSE: HRB), a company based in the U.S. that is primarily recognized for its tax preparation services, is set to announce its earnings for the fiscal fourth quarter (June fiscal year) on Tuesday, August 12, 2025. Analysts forecast earnings of $2.83 per share, alongside revenue of $1.07 billion. This would indicate a 50% year-over-year increase in adjusted earnings as well as a slight rise in sales compared to the previous year's results of $1.89 per share and $1.06 billion in revenue. Historically, H&R Block shares frequently experience a boost after earnings are released, increasing half the time post-results, with an average one-day gain of 7.6% and peaks reaching as high as 20%. Also see, Buy or Sell HRB Stock? Earlier this year, management reiterated its full-year guidance, relying on growth within its DIY tax-filing platform and Wave small-business services. Q4 also represents the peak of tax season, where assisted filings and last-minute electronic submissions can significantly influence results. A stronger-than-expected performance in this area might yield positive surprises. Separately see, Is Stride's 40% Surge Just The Beginning? The company has a current market capitalization of $7.4 billion. In the last twelve months, revenue was $3.7 billion, with operational profit amounting to $808 million and a net income of $564 million. While much will hinge on how results compare to consensus forecasts and expectations, being aware of historical trends could benefit those trading on events. For those trading around earnings, being knowledgeable about HRB's historical response patterns could provide an advantage—whether by positioning ahead of the announcement or reacting swiftly to volatility following the report. If you are looking for upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks. Historical Odds Of Positive Post-Earnings Return Some insights regarding one-day (1D) post-earnings returns: Additional data on observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized in the table below along with the corresponding statistics. Correlation Between 1D, 5D, and 21D Historical Returns A strategy that carries relatively less risk (though it may not be useful if the correlation is weak) is to understand the correlations between short-term and medium-term returns following earnings, identify pairs with the highest correlations, and execute the appropriate trades. For instance, if 1D and 5D show the greatest correlation, a trader might take a 'long' position for the next 5 days following a positive 1D post-earnings return. Below is correlation data based on a 5-year and 3-year (more recent) history. It's essential to note that the correlation 1D_5D indicates the relationship between 1D post-earnings returns and subsequent 5D returns. Is There Any Correlation With Peer Earnings? Occasionally, the performance of peers can impact the stock's reaction after earnings are announced. In fact, the market adjustments may start occurring prior to the earnings being disclosed. Here is some historical data comparing the post-earnings performance of H&R Block stock with that of peers who reported their earnings just before H&R Block. For a fair comparison, peer stock returns are also depicted as post-earnings one-day (1D) returns. Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors.
Yahoo
12-08-2025
- Business
- Yahoo
H&R Block, Inc. Announces Leadership Succession Plan
Jeffrey J. Jones II to Retire After Eight Years; Will Remain Strategic Advisor Curtis Campbell, President of Global Consumer Tax and Chief Product Officer at H&R Block, Named CEO-Elect Appointment Comes After Rigorous Succession Planning Process KANSAS CITY, Mo., Aug. 11, 2025 (GLOBE NEWSWIRE) -- H&R Block, Inc. (NYSE: HRB) (the "Company') today announced that Jeffrey J. Jones II has informed the Board of Directors of his intention to retire as President and CEO of H&R Block on December 31, 2025, and will remain on the Board until such time. He will continue as a Strategic Advisor at the Company through September 2026. He will be succeeded by Curtis Campbell, currently H&R Block's President of Global Consumer Tax and Chief Product Officer, starting January 1, 2026. Since becoming CEO of H&R Block in 2017, Jones has spearheaded the Company's innovation to address changing consumer needs. The introduction of Upfront Transparent Pricing, as well as efforts under the Block Horizons strategy with a focus on Small Business Services, Spruce mobile banking, and the omnichannel tax experience, including AI Tax Assist, have helped to drive growth and relevance of the H&R Block brand. In addition, under Jones' leadership, the Company increased its quarterly dividend by approximately 70% and repurchased approximately 40% of its shares outstanding, returning over $4.0 billion in capital to shareholders. During his tenure, the Company's stock price increased 123% and its market capitalization grew from $5.5 billion to $7.4 billion. 'On behalf of the Board, I'd like to thank Jeff for his leadership in modernizing the Company's culture and offerings and creating significant shareholder value over the last eight years,' said Board Chair Richard A. Johnson. 'There's no question he leaves the Company well-positioned for the future.' 'Leading H&R Block over the last eight years has been the honor of a lifetime,' said Jones. 'With bold bets to drive growth, the creation of an extraordinary culture and more recently by embracing the potential of AI to augment the human help for which we are known, we have elevated the brand's relevance and created significant shareholder value.' Beyond his customer-focused initiatives, Jones launched highly successful community impact programs including Make Every Block Better, Fund Her Future, and A Fair Shot, all of which have bolstered the Company's commitment to building connections among neighbors and supporting small business owners. Jones indicated that he is proud of the Company's high-performing connected culture and record-high associate engagement, which has led to H&R Block's regular recognition on lists of best places to work and was featured in the 2024 Harvard Business School case study: 'Driving Transformation - Jeff Jones at H&R Block.' Campbell's selection follows a comprehensive succession-planning process. His appointment to succeed Jones as President and Chief Executive Officer, effective January 1, 2026, was unanimously supported by H&R Block's Board of Directors. 'I am thrilled to pass the baton to Curtis, who joined Block in May 2024. He has deep tax industry expertise and is a tremendous fit for Block's culture. Curtis is uniquely positioned to continue driving our transformation and sustainable revenue growth,' said Jones. Johnson added: 'This transition reflects the Board's ongoing commitment to a rigorous, succession planning process focused on identifying the right leader for H&R Block's next chapter, and it is a strong testament to our leadership team's strength and capabilities that we have the right candidate in Curtis. We have the utmost confidence in him as he steps into the President and CEO role, and we look forward to working alongside him to deliver continued results and value for our customers, employees, and shareholders.' Jones and Campbell will work closely to orchestrate a smooth leadership transition until January 1, 2026, when Campbell will assume the role of President and Chief Executive Officer and will join the Company's Board as a director. Jones will continue to assist in the transition as a Strategic Advisor at the Company until September 2026. 'I am honored to be chosen to lead this iconic brand and company, which I have deeply admired and respected for many years,' Campbell said. 'Jeff's vision and leadership transformed H&R Block into the remarkable company it is today, and his legacy will be felt for years to come. I am excited to lead our amazing team as we enter our next phase of growth and continue to deliver on our purpose: To provide help and inspire confidence in our clients and communities everywhere.' About Curtis Campbell Curtis Campbell has served as President, Global Consumer Tax and Chief Product Officer of H&R Block since May 2024. In this position, Campbell leads an enterprise-wide agenda to deliver customer-centric strategies and exceptional client and tax professional outcomes with a focus on achieving strong financial performance for the global consumer tax business. Campbell is also responsible for leading enterprise-wide product management excellence. Prior to joining H&R Block, Campbell had a history of success in executive roles, including Managing Vice President-Consumer Auto at Capital One, Vice President-Product Management and Strategy at Intuit, and General Manager-Head of Product at Amazon Web Services. Immediately before joining H&R Block, he served as President and CEO of TaxAct, where, during his five-year tenure, he led TaxAct through a dramatic transformation resulting in double-digit revenue growth. He holds a bachelor's degree in business administration from The Citadel and a Master of International Business degree from the University of South Carolina. For more information about H&R Block, visit About H&R BlockH&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The Company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the Company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News. For inquiries, please contact: Media Relations: Lexi Ryan, (816) 877-7076, Media Desk: Mediadesk@ Investor Relations: Jessica Hazel, (816) 854-4214, Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "commits," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management's plans or objectives for future operations, products or services, anticipated effects of leadership changes, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company's control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled "Risk Factors" and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
