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H&R Block (HRB) Surpasses Q3 Earnings and Revenue Estimates
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H&R Block, Inc. (HRB - Free Report) reported impressive third-quarter fiscal 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
HRB’s adjusted earnings (adjusting 8 cents from non-recurring items) of $4.94 per share surpassed the Zacks Consensus Estimate by 6% and increased 17.6% from the year-ago quarter. Revenues of $2.18 billion beat the consensus estimate by 2% and increased 4.4% year over year.
H&R Block’s shares have gained 57.5% over the past year, significantly outperforming the 16.5% growth of the industry it belongs to and the 25.8% increase of the Zacks S&P 500 Composite.
Revenues from U.S. tax preparation and related services were $2.03 billion, up 5.6% from third-quarter fiscal 2023. Strong performance driven by paid clients and paid NAC, Tax Pro Review growth, customer satisfaction score and the launch of AI Tax Assist drove this segment’s revenues. Revenues from Financial services were $62.32 million, down 20.2% from the year-ago fiscal quarter.
EBITDA was $964.1 million, which increased 5.9% on a year-over-year basis. H&R Block exited the quarter with cash and cash equivalents of $794.61 million compared with $321.01 million at the end of the preceding quarter. Long-term debt was $1.49 billion compared with $2.29 billion at the end of second-quarter fiscal 2024.
The company generated $1.36 billion of cash from operating activities while capex utilized was $21.12 million.
2024 Outlook
For 2024, H&R Block continues to expect revenues in the range of $3.530-$3.585 billion. The midpoint of the guided range ($3.56 billion) is the same as the current Zacks Consensus Estimate.
Adjusted earnings per share (EPS) are projected to be between $4.1 and $4.3. The midpoint of the guided range ($4.2) is lower than the consensus estimate of $4.25.
EBITDA is anticipated to be between $930 million and $965 million. The effective tax rate is expected to be around the band of 21-22% compared with 23% previously.
CLH’s earnings of $1.29 per share beat the Zacks Consensus Estimate by 11.2% but declined 5.2% from the year-ago quarter. Total revenues of $1.38 billion surpassed the consensus estimate by 2.8% and increased 5.3% on a year-over-year basis.
RSG’s EPS (excluding 1 cent from non-recurring items) of $1.45 beat the Zacks Consensus Estimate by 5.8% and increased 16.9% from the year-ago quarter. Revenues of $3.88 billion missed the consensus mark by a slight margin but increased 7.8% year over year.
CPAY’s EPS of $4.1 beat the Zacks Consensus Estimate by a slight margin and increased 7.9% from the year-ago quarter. However, the total revenues of $935.25 million missed the consensus estimate by a slight margin but rose 3.8% year over year.
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H&R Block (HRB) Surpasses Q3 Earnings and Revenue Estimates
H&R Block, Inc. (HRB - Free Report) reported impressive third-quarter fiscal 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
HRB’s adjusted earnings (adjusting 8 cents from non-recurring items) of $4.94 per share surpassed the Zacks Consensus Estimate by 6% and increased 17.6% from the year-ago quarter. Revenues of $2.18 billion beat the consensus estimate by 2% and increased 4.4% year over year.
H&R Block’s shares have gained 57.5% over the past year, significantly outperforming the 16.5% growth of the industry it belongs to and the 25.8% increase of the Zacks S&P 500 Composite.
H&R Block, Inc. Price and EPS Surprise
H&R Block, Inc. price-eps-surprise | H&R Block, Inc. Quote
Other Quarterly Numbers
Revenues from U.S. tax preparation and related services were $2.03 billion, up 5.6% from third-quarter fiscal 2023. Strong performance driven by paid clients and paid NAC, Tax Pro Review growth, customer satisfaction score and the launch of AI Tax Assist drove this segment’s revenues. Revenues from Financial services were $62.32 million, down 20.2% from the year-ago fiscal quarter.
EBITDA was $964.1 million, which increased 5.9% on a year-over-year basis. H&R Block exited the quarter with cash and cash equivalents of $794.61 million compared with $321.01 million at the end of the preceding quarter. Long-term debt was $1.49 billion compared with $2.29 billion at the end of second-quarter fiscal 2024.
The company generated $1.36 billion of cash from operating activities while capex utilized was $21.12 million.
2024 Outlook
For 2024, H&R Block continues to expect revenues in the range of $3.530-$3.585 billion. The midpoint of the guided range ($3.56 billion) is the same as the current Zacks Consensus Estimate.
Adjusted earnings per share (EPS) are projected to be between $4.1 and $4.3. The midpoint of the guided range ($4.2) is lower than the consensus estimate of $4.25.
EBITDA is anticipated to be between $930 million and $965 million. The effective tax rate is expected to be around the band of 21-22% compared with 23% previously.
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.
Recent Earnings Snapshots
Clean Harbors, Inc. (CLH - Free Report) reported impressive first-quarter results.
CLH’s earnings of $1.29 per share beat the Zacks Consensus Estimate by 11.2% but declined 5.2% from the year-ago quarter. Total revenues of $1.38 billion surpassed the consensus estimate by 2.8% and increased 5.3% on a year-over-year basis.
Republic Services, Inc. (RSG - Free Report) reported mixed first-quarter 2024 results.
RSG’s EPS (excluding 1 cent from non-recurring items) of $1.45 beat the Zacks Consensus Estimate by 5.8% and increased 16.9% from the year-ago quarter. Revenues of $3.88 billion missed the consensus mark by a slight margin but increased 7.8% year over year.
Corpay (CPAY - Free Report) reported mixed first-quarter results.
CPAY’s EPS of $4.1 beat the Zacks Consensus Estimate by a slight margin and increased 7.9% from the year-ago quarter. However, the total revenues of $935.25 million missed the consensus estimate by a slight margin but rose 3.8% year over year.