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H&R Block's (HRB) Q2 Loss Narrower Than Expected, Revenues Beat
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H&R Block, Inc. (HRB - Free Report) reported a second-quarter fiscal 2023 adjusted loss per share of $1.37, beating the Zacks Consensus Estimate of a loss of $1.48. The company had suffered a loss of $1.02 per share in the year-ago quarter.
Revenues of $166.4 million surpassed the consensus estimate by 11% and increased 5% year over year. The top line was positively impacted by volumes and net average charge as the company had a strong end to the 2022 tax season. Lower Emerald Card revenues partially offset the top-line growth.
Other Quarterly Numbers
Adjusted loss per share from continuing operations widened from $1.02 to $1.37 on a year-over-year basis, mainly due to the higher net loss from lower income tax benefits and fewer shares outstanding.
H&R Block exited the quarter with a cash and cash equivalents balance of $264.5 million compared with the $322.8 million at the end of the prior quarter. Long-term debt and line of credit borrowings were $2.1 billion compared with $1.5 billion in the previous quarter figure.
H&R Block used $458.8 million of cash in operating activities while capex was $25.3 million. HRB paid out dividends of $46 million in the quarter.
H&R Block expects revenues in the range of $3.535-$3.585 billion, the midpoint ($3.56 billion) being slightly above the current Zacks Consensus Estimate of $3.55 billion.
Adjusted EPS is expected to be between $3.7 and $3.95, the midpoint ($3.825) being slightly above the current Zacks Consensus Estimate of $3.8. EBITDA is expected between $915 million and $950 million. The effective tax rate is expected to be around 22%.
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
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H&R Block's (HRB) Q2 Loss Narrower Than Expected, Revenues Beat
H&R Block, Inc. (HRB - Free Report) reported a second-quarter fiscal 2023 adjusted loss per share of $1.37, beating the Zacks Consensus Estimate of a loss of $1.48. The company had suffered a loss of $1.02 per share in the year-ago quarter.
Revenues of $166.4 million surpassed the consensus estimate by 11% and increased 5% year over year. The top line was positively impacted by volumes and net average charge as the company had a strong end to the 2022 tax season. Lower Emerald Card revenues partially offset the top-line growth.
Other Quarterly Numbers
Adjusted loss per share from continuing operations widened from $1.02 to $1.37 on a year-over-year basis, mainly due to the higher net loss from lower income tax benefits and fewer shares outstanding.
H&R Block exited the quarter with a cash and cash equivalents balance of $264.5 million compared with the $322.8 million at the end of the prior quarter. Long-term debt and line of credit borrowings were $2.1 billion compared with $1.5 billion in the previous quarter figure.
H&R Block used $458.8 million of cash in operating activities while capex was $25.3 million. HRB paid out dividends of $46 million in the quarter.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote
2023 Outlook
H&R Block expects revenues in the range of $3.535-$3.585 billion, the midpoint ($3.56 billion) being slightly above the current Zacks Consensus Estimate of $3.55 billion.
Adjusted EPS is expected to be between $3.7 and $3.95, the midpoint ($3.825) being slightly above the current Zacks Consensus Estimate of $3.8. EBITDA is expected between $915 million and $950 million. The effective tax rate is expected to be around 22%.
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.
Performances of Some Other Service Providers
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.