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Why Is H&R Block (HRB) Up 8.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for H&R Block (HRB - Free Report) . Shares have added about 8.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
H&R Block Posts Narrower-Than-Expected Loss in Q2
H&R Block reported fourth-quarter fiscal 2021 adjusted loss per share of $1.02 that beat the Zacks Consensus Estimate of a loss of $1.28. The company had suffered a loss of $1.09 per share in the year-ago quarter.
Revenues of $158.8 million surpassed the consensus estimate by 8.3%. The top line was positively impacted by growth from Wave and strength in Emerald Card.
Other Quarterly Numbers
Pretax loss came in at $299 million, decreasing by $2 million from the year-ago quarter. Total operating expenses were $436 million, up 4% year over year.
H&R Block exited the quarter with cash and cash equivalents balance of $336.3 million compared with $891.7 million at the end of the prior quarter. Long-term debt was $1.8 billion compared with $1.9 billion at the end of the previous quarter.
H&R Block used $600.9 million of cash in operating activities while capex was $23.8 million. The company paid out dividends of $47.9 million in the quarter.
2022 Outlook
H&R Block expects revenues in the range of $3.25 billion to $3.35 billion in 2022, the mid point ($3.3 billion) of which is slightly below the current Zacks Consensus Estimate of $3.32 billion. EBITDA is expected to be between $765 million and $815 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5.11% due to these changes.
VGM Scores
Currently, H&R Block has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H&R Block has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is H&R Block (HRB) Up 8.8% Since Last Earnings Report?
It has been about a month since the last earnings report for H&R Block (HRB - Free Report) . Shares have added about 8.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
H&R Block Posts Narrower-Than-Expected Loss in Q2
H&R Block reported fourth-quarter fiscal 2021 adjusted loss per share of $1.02 that beat the Zacks Consensus Estimate of a loss of $1.28. The company had suffered a loss of $1.09 per share in the year-ago quarter.
Revenues of $158.8 million surpassed the consensus estimate by 8.3%. The top line was positively impacted by growth from Wave and strength in Emerald Card.
Other Quarterly Numbers
Pretax loss came in at $299 million, decreasing by $2 million from the year-ago quarter. Total operating expenses were $436 million, up 4% year over year.
H&R Block exited the quarter with cash and cash equivalents balance of $336.3 million compared with $891.7 million at the end of the prior quarter. Long-term debt was $1.8 billion compared with $1.9 billion at the end of the previous quarter.
H&R Block used $600.9 million of cash in operating activities while capex was $23.8 million. The company paid out dividends of $47.9 million in the quarter.
2022 Outlook
H&R Block expects revenues in the range of $3.25 billion to $3.35 billion in 2022, the mid point ($3.3 billion) of which is slightly below the current Zacks Consensus Estimate of $3.32 billion. EBITDA is expected to be between $765 million and $815 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5.11% due to these changes.
VGM Scores
Currently, H&R Block has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H&R Block has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.