Latest news with #Q1CY2025
Yahoo
23-05-2025
- Business
- Yahoo
Ross Stores (NASDAQ:ROST) Exceeds Q1 Expectations But Stock Drops
Off-price retail company Ross Stores (NASDAQ:ROST) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 2.6% year on year to $4.98 billion. On the other hand, next quarter's revenue guidance of $5.37 billion was less impressive, coming in 2.3% below analysts' estimates. Its GAAP profit of $1.47 per share was 2.5% above analysts' consensus estimates. Is now the time to buy Ross Stores? Find out in our full research report. Revenue: $4.98 billion vs analyst estimates of $4.96 billion (2.6% year-on-year growth, 0.5% beat) EPS (GAAP): $1.47 vs analyst estimates of $1.43 (2.5% beat) Adjusted EBITDA: $761.7 million vs analyst estimates of $710.4 million (15.3% margin, 7.2% beat) Revenue Guidance for Q2 CY2025 is $5.37 billion at the midpoint, below analyst estimates of $5.50 billion EPS (GAAP) guidance for Q2 CY2025 is $1.48 at the midpoint, missing analyst estimates by 10.3% Operating Margin: 12.2%, in line with the same quarter last year Free Cash Flow Margin: 4.1%, similar to the same quarter last year Locations: 2,205 at quarter end, up from 2,127 in the same quarter last year Same-Store Sales were flat year on year (3% in the same quarter last year) Market Capitalization: $50.21 billion Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $21.26 billion in revenue over the past 12 months, Ross Stores is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of places to build new stores, making it harder to find incremental growth. To expand meaningfully, Ross Stores likely needs to tweak its prices or enter new markets. As you can see below, Ross Stores grew its sales at a tepid 5.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts), but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Ross Stores reported modest year-on-year revenue growth of 2.6% but beat Wall Street's estimates by 0.5%. Company management is currently guiding for a 1.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months, similar to its six-year rate. We still think its growth trajectory is satisfactory given its scale and indicates the market sees success for its products. 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. A retailer's store count often determines how much revenue it can generate. Ross Stores sported 2,205 locations in the latest quarter. Over the last two years, it has opened new stores at a rapid clip by averaging 4.2% annual growth, among the fastest in the consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. Ross Stores's demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 3.5% per year. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Ross Stores multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Ross Stores's year on year same-store sales were flat. This was a meaningful deceleration from its historical levels. We'll be watching closely to see if Ross Stores can reaccelerate growth. We enjoyed seeing Ross Stores beat analysts' revenue, EPS, and EBITDA expectations this quarter. On the other hand, its revenue and EPS guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 9% to $138.50 immediately following the results. Is Ross Stores an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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
22-05-2025
- Business
- Yahoo
American Superconductor (NASDAQ:AMSC) Beats Expectations in Strong Q1, Stock Soars
Power resiliency solutions provider American Superconductor (NASDAQ:AMSC) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 58.6% year on year to $66.66 million. On top of that, next quarter's revenue guidance ($66 million at the midpoint) was surprisingly good and 8.8% above what analysts were expecting. Its non-GAAP profit of $0.12 per share was 24.1% above analysts' consensus estimates. Is now the time to buy American Superconductor? Find out in our full research report. Revenue: $66.66 million vs analyst estimates of $60.27 million (58.6% year-on-year growth, 10.6% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.10 (24.1% beat) Adjusted EBITDA: $6.09 million vs analyst estimates of $2.3 million (9.1% margin, significant beat) Revenue Guidance for Q2 CY2025 is $66 million at the midpoint, above analyst estimates of $60.65 million Adjusted EPS guidance for Q2 CY2025 is $0.10 at the midpoint, below analyst estimates of $0.11 Operating Margin: 2.5%, up from -0.8% in the same quarter last year Free Cash Flow Margin: 7.9%, up from 4.6% in the same quarter last year Market Capitalization: $973.9 million Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, American Superconductor's sales grew at an incredible 28.4% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. American Superconductor's annualized revenue growth of 45% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. American Superconductor's recent performance shows it's one of the better Renewable Energy businesses as many of its peers faced declining sales because of cyclical headwinds. This quarter, American Superconductor reported magnificent year-on-year revenue growth of 58.6%, and its $66.66 million of revenue beat Wall Street's estimates by 10.6%. Company management is currently guiding for a 63.8% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is healthy and suggests the market is baking in success for its products and services. 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 is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Although American Superconductor was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 11.5% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. On the plus side, American Superconductor's operating margin rose by 24.8 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to show consistent profitability. This quarter, American Superconductor generated an operating profit margin of 2.5%, up 3.3 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. American Superconductor's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For American Superconductor, its two-year annual EPS growth of 61.6% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, American Superconductor reported EPS at $0.12, up from $0.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects American Superconductor's full-year EPS of $0.63 to shrink by 15.9%. We were impressed by how significantly American Superconductor blew past analysts' revenue and EBITDA expectations this quarter. We were also excited its revenue guidance for next quarter outperformed Wall Street's estimates. On the other hand, its EPS guidance for next quarter missed. Zooming out, we think this was a solid print. The stock traded up 7.3% to $26 immediately after reporting. Indeed, American Superconductor had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Urban Outfitters (NASDAQ:URBN) Reports Upbeat Q1, Stock Soars
Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) announced better-than-expected revenue in Q1 CY2025, with sales up 10.7% year on year to $1.33 billion. Its GAAP profit of $1.16 per share was 39.6% above analysts' consensus estimates. Is now the time to buy Urban Outfitters? Find out in our full research report. Revenue: $1.33 billion vs analyst estimates of $1.29 billion (10.7% year-on-year growth, 3% beat) EPS (GAAP): $1.16 vs analyst estimates of $0.83 (39.6% beat) Adjusted EBITDA: $165.5 million vs analyst estimates of $133.4 million (12.5% margin, 24.1% beat) Operating Margin: 9.6%, up from 6.2% in the same quarter last year Free Cash Flow was -$13.13 million, down from $17.46 million in the same quarter last year Same-Store Sales rose 4.8% year on year, in line with the same quarter last year Market Capitalization: $5.68 billion 'We are excited to announce record first quarter revenues and profits,' said Richard A. Hayne, Chief Executive Officer. Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $5.68 billion in revenue over the past 12 months, Urban Outfitters is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Urban Outfitters's 6.2% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was tepid, but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Urban Outfitters reported year-on-year revenue growth of 10.7%, and its $1.33 billion of revenue exceeded Wall Street's estimates by 3%. Looking ahead, sell-side analysts expect revenue to grow 5.8% over the next 12 months, similar to its six-year rate. This projection is healthy and implies the market is baking in success for its products. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. Urban Outfitters opened new stores quickly over the last two years, averaging 2.2% annual growth, faster than the broader consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that Urban Outfitters reports its store count intermittently, so some data points are missing in the chart below. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Urban Outfitters's demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 4.2% per year. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Urban Outfitters multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Urban Outfitters's same-store sales rose 4.8% year on year. This performance was more or less in line with its historical levels. We were impressed by how significantly Urban Outfitters blew past analysts' EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide out, we think this quarter featured some important positives. The stock traded up 6.1% to $63.25 immediately following the results. Sure, Urban Outfitters had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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
15-05-2025
- Business
- Yahoo
GTLS Q1 Earnings Call: Chart Maintains Guidance Amid Tariff Uncertainty and Broad Market Demand
Gas handling company Chart (NYSE:GTLS) met Wall Street's revenue expectations in Q1 CY2025, with sales up 5.3% year on year to $1 billion. The company's full-year revenue guidance of $4.75 billion at the midpoint came in 2.5% above analysts' estimates. Its non-GAAP profit of $1.71 per share was 6.4% below analysts' consensus estimates. Is now the time to buy GTLS? Find out in our full research report (it's free). Revenue: $1 billion vs analyst estimates of $1 billion (5.3% year-on-year growth, in line) Adjusted EPS: $1.71 vs analyst expectations of $1.83 (6.4% miss) Adjusted EBITDA: $231.1 million vs analyst estimates of $226.3 million (23.1% margin, 2.1% beat) The company reconfirmed its revenue guidance for the full year of $4.75 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $12.50 at the midpoint EBITDA guidance for the full year is $1.2 billion at the midpoint, above analyst estimates of $1.16 billion Operating Margin: 15.2%, up from 11.9% in the same quarter last year Free Cash Flow was -$80.1 million compared to -$141.2 million in the same quarter last year Backlog: $5.14 billion at quarter end, up 18.8% year on year Market Capitalization: $7.87 billion Chart's first quarter results reflected continued demand across key end markets, with management citing strong order activity in areas such as LNG, space exploration, and aftermarket services. CEO Jillian Evanko specifically pointed to operational efficiencies and improved project mix as drivers of margin expansion, while also highlighting sequential improvements in backlog and segment-level performance. The company's focus on cost controls and leveraging a flexible manufacturing footprint were emphasized as contributors to the quarter's performance. Looking ahead, management reiterated its full-year revenue and profit guidance, despite uncertainty related to global tariffs and macroeconomic volatility. Evanko detailed mitigation strategies including regional sourcing, price increases in certain business lines, and a growing emphasis on aftermarket services, stating, 'We believe that we're well underway in mitigating these tariffs, and that gives us confidence.' Management also emphasized visibility provided by a diversified backlog and strong pipeline across industries such as data centers and carbon capture. Chart's management attributed Q1 performance to a combination of diversified demand, operational improvements, and proactive tariff mitigation. Segment-specific trends and strategic actions shaped the quarter's outcomes and will influence the company's trajectory in 2025. Aftermarket Services Growth: The Repair, Service & Leasing (RSL) segment, which now represents about a third of revenue and half of operating profit, benefited from expanded service agreements and increased digital tool adoption. Orders in RSL grew over 36% year-over-year, with management noting broad-based demand across retrofit, service, and spares. Data Centers and AI Energy Demand: Chart's pipeline for data center solutions, including heat exchangers and cryogenic cooling, expanded to $400 million in potential opportunities over the next 12–18 months. Management added a dedicated commercial lead for this segment and cited increased customer discussions around energy-intensive AI projects. Specialty Products Margin Recovery: Specialty Products achieved gross margin above 30% for the first time since 2022, driven by improved efficiencies and backlog conversion in hydrogen, water treatment, and power generation. Management expects further gains as recent capacity investments are absorbed. Tariff Mitigation Actions: The company outlined steps such as regional sourcing, flexible manufacturing, selective price increases, and securing tariff exemptions to limit the impact of new trade measures. Most steel is sourced domestically, and backlog pricing is largely locked in for current projects. Diversified End Market Exposure: Orders in space exploration, nuclear, and marine each exceeded full-year 2024 levels in just the first quarter, reflecting the company's broader presence across industries. Management highlighted this diversification as a buffer against potential weakness in industrial gas and hydrogen markets in the Americas. Management anticipates that backlog visibility, proactive cost actions, and expansion into high-growth markets will shape Chart's performance for the remainder of the year. Aftermarket Emphasis: A greater reliance on service and maintenance business provides recurring revenue streams and stability, even amid potential slowdowns in new equipment orders. Management expects this area to continue growing and to support margins. Data Center and LNG Pipeline: Chart's addressable market in data centers and LNG projects is expanding, with a $1 billion potential LNG order pipeline and growing interest in cryogenic and energy efficiency solutions for AI infrastructure. Management views these as key growth engines. Tariff and Macro Risks: While management has implemented mitigation strategies for tariffs and supply chain disruptions, ongoing global economic uncertainty and potential project delays in certain sectors (notably hydrogen and industrial gas in the Americas) remain watch areas. Scott Gruber (Citigroup): Asked about Chart's exposure to China and how U.S.-based fabrication destined for China could be shifted. CEO Jillian Evanko explained that most manufacturing for China occurs locally and that recent tariff exemptions have reduced material exposure by about 40%. Saurabh Pant (Bank of America): Inquired about macroeconomic risks and visibility into backlog coverage. Evanko highlighted diversification across end markets and a strong service business as factors supporting guidance, while noting hydrogen and industrial gas as risk areas. Marc Bianchi (TD Cowen): Sought clarification on the effectiveness of tariff mitigation and whether guidance assumed any benefits. Evanko confirmed that guidance is based on gross tariff impact, with mitigation efforts already underway but not yet reflected in results. Eric Stine (Craig-Hallum): Questioned the sustainability of recent growth in new end markets like space exploration. Evanko described an evolution toward greater visibility and recurring content across multiple sectors, supported by a growing backlog. Benjamin Nolan (Stifel): Asked about the acceleration of LNG activity. Evanko confirmed increased customer urgency and identified a $1 billion LNG order pipeline, excluding certain large projects not yet in backlog. Over the next few quarters, the StockStory team will monitor (1) the pace of large LNG and data center orders converting into backlog, (2) the sustainability of margin improvements in Specialty Products and RSL, and (3) the effectiveness of tariff mitigation as new trade policies are implemented. Developments in hydrogen and industrial gas demand in the Americas will also be key indicators for overall business momentum. Chart currently trades at a forward P/E ratio of 13.5×. Should you load up, cash out, or stay put? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
11-05-2025
- Business
- Yahoo
HRB Q1 Earnings Call: Client Mix Shift and Assisted Growth Drive Outperformance
Tax preparation company H&R Block (NYSE:HRB) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 4.2% year on year to $2.28 billion. The company expects the full year's revenue to be around $3.72 billion, close to analysts' estimates. Its non-GAAP profit of $5.38 per share was 4.1% above analysts' consensus estimates. Is now the time to buy HRB? Find out in our full research report (it's free). Revenue: $2.28 billion vs analyst estimates of $2.25 billion (4.2% year-on-year growth, 1.3% beat) Adjusted EPS: $5.38 vs analyst estimates of $5.17 (4.1% beat) Adjusted EBITDA: $1.01 billion vs analyst estimates of $984.2 million (44.4% margin, 2.8% beat) The company reconfirmed its revenue guidance for the full year of $3.72 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $5.25 at the midpoint EBITDA guidance for the full year is $997.5 million at the midpoint, in line with analyst expectations Operating Margin: 43%, in line with the same quarter last year Free Cash Flow Margin: 57.2%, down from 61.4% in the same quarter last year Market Capitalization: $7.81 billion H&R Block's Q1 results were shaped by a pronounced shift in client behavior during the tax season, with more customers opting for in-person Assisted services over digital do-it-yourself (DIY) options. CEO Jeffrey Jones highlighted the company's focus on redesigning the Assisted client experience, improving retention, and leveraging advanced matching algorithms to boost conversion rates, especially among higher-income and more complex filers. The company also benefited from disciplined labor management and continued enhancements to its Second Look review service, which uncovered additional value for clients. Looking ahead, management reconfirmed guidance for the full year, citing ongoing momentum in Assisted tax preparation and growth in small business and financial products. CFO Tiffany Mason pointed to the company's stable industry positioning and strong cash flow generation, while acknowledging that higher legal expenses may weigh slightly on EBITDA for the year. H&R Block remains focused on investing in its core business, while capital allocation priorities include continued share repurchases and maintaining its dividend policy. The quarter's performance was influenced by evolving client preferences and targeted operational improvements, with management highlighting shifting demand and new service initiatives as key factors. Assisted Channel Momentum: The company reported an uptick in Assisted client volumes, driven by a shift in consumer preference toward expert help amid uncertain tax policy discussions and complex filing situations. Enhanced Client Retention Efforts: H&R Block rolled out new features in its Assisted segment, such as improved tax pro matching and increased focus on setting appointments for the next tax season, resulting in better client conversion and retention metrics. Second Look Service Expansion: The automated Second Look review, which assesses prior-year returns for missed credits or deductions, saw a tenfold increase in new client participation, uncovering additional value for nearly a quarter of those reviewed. DIY Revenue Growth in Complex Filers: DIY revenues rose as the company successfully attracted higher-complexity filers and maintained discipline in customer acquisition, prioritizing clients with higher lifetime value over free filers. Small Business and Financial Product Progress: The small business segment delivered high single-digit revenue growth, while the Spruce mobile banking platform continued to expand, with effective cross-selling strategies bringing in new clients and higher engagement. Management's outlook for the remainder of the year centers on sustained momentum in the Assisted channel, digital engagement, and disciplined capital allocation, with a focus on market share gains among higher-value clients. Assisted Category Leadership: The company aims to capitalize on ongoing consumer preference for expert guidance, especially among clients with greater filing complexity and higher incomes. Digital and Hybrid Service Expansion: Continued investment in digital tools like AI Tax Assist and the MyBlock app supports growth in both fully virtual and hybrid tax preparation, catering to changing customer preferences. Capital Allocation and Franchise Buybacks: Ongoing share repurchases and opportunistic franchise buybacks are expected to support earnings growth, while management notes potential legal expense headwinds for EBITDA. Kartik Mehta (Northcoast Research): Asked about the industry shift toward Assisted tax preparation; management attributed it to increased consumer uncertainty and a preference for expert help during complex or ambiguous tax seasons. Scott Schneeberger (Oppenheimer & Co.): Inquired about the decline in franchise operations versus company-owned growth; CFO Mason clarified that buybacks of franchise locations were the main driver, not underlying franchise weakness. Scott Schneeberger (Oppenheimer & Co.): Probed the flat paid online DIY volume and competitive dynamics; CEO Jones said the focus remained on complex paid filers and disciplined marketing spend rather than competing for free filers. George Tong (Goldman Sachs): Noted that Assisted volumes lagged industry growth; Jones acknowledged improved conversion and retention but admitted that market share gains remain a priority. Alexander Paris (Barrington Research): Asked about the impact of filing deadline extensions in certain states; Mason explained this would shift some volume to next quarter but was not material to the full-year outlook. In the coming quarters, the StockStory team will be monitoring (1) whether H&R Block can further increase market share among higher-income and complex filers, (2) progress in digital engagement through AI-driven tools and virtual services, and (3) the impact of franchise location buybacks on overall profitability and client mix. Execution in the small business and financial products segments will also be signposts for sustained top-line growth. H&R Block currently trades at a forward EV-to-EBITDA ratio of 17.2×. In the wake of earnings, is it a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. 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
