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H&R Block (HRB) Beats Q4 Earnings and Revenue Estimates
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H&R Block Inc. (HRB - Free Report) reported fourth-quarter fiscal 2017 (ended Apr 30, 2017) adjusted earnings from continuing operations of $3.76 per share, which beat the Zacks Consensus Estimate of $3.51. Increase in earnings was attributed to a rise in revenues during the quarter.
GAAP earnings from continuing operations came in at $3.79 per share compared with $3.15 in the year-ago quarter.
For full-year fiscal 2017, the company reported adjusted earnings from continuing operations of $1.96 per share compared with $1.53 in the prior year. This improvement was largely due to the company’s cost reduction efforts, which also enabled investment in key client-driving initiatives during the year.
Operational Performance
H&R Block reported revenues of $2,327.9 million in the fiscal fourth quarter compared with $2,297.5 million in the prior-year quarter. Revenues beat the Zacks Consensus Estimate of $2,316 million.
For fiscal 2017, the company reported revenues of $3,036.3 million, relatively flat with the prior year. This was due to improvement in the company's Assisted net average charge, partially offset by a decline in return volume.
Total operating expenses declined 3.7% year over year to $1,094.4 million driven by effective cost management.
Financial Position
H&R Block exited the quarter with cash and cash equivalents of $1,011.3 million compared with $896.8 million as of Apr 30, 2016. Total outstanding long-term debt was approximately $1,493 million.
For the fiscal year, net cash used for operating activities was $550.1 million, which was 3.3% higher than the year-ago period.
Share Repurchase and Dividend
In fiscal 2017, the company bought back approximately 14 million shares worth $317 million. As of Apr 30, 2017, 207.2 million shares were outstanding.
The company completed share repurchases under a $3.5 billion share repurchase program as of Aug 2015 which will run through Jun 2019. The company repurchased approximately 70.4 million shares, or 25.5% of shares outstanding at the beginning of the program for an aggregate purchase price of approximately $2.3 billion.
The board of directors declared a quarterly dividend of 24 cents per share, payable on Jul 3 to shareholders on record as of Jun 23. The company has been paying quarterly dividends to its shareholders since the company went public in 1962.
Peer Performance
Intuit Inc. (INTU - Free Report) reported adjusted earnings per share of $3.71, surpassing the Zacks Consensus Estimate of $3.67.
Zacks Rank & Key Picks
H&R Block presently carries a Zacks Rank #2 (Buy). A couple of other stocks in the Consumer Services Miscellaneous industry worth considering include Care.com, Inc. and Weight Watchers International, Inc. (WTW - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Care.com has a long-term earnings growth expectation of 15%. It has an average forward PE of 72.9x.
Weight Watchers has a long-term earnings growth expectation of 15%. It has an average forward PE of 21.2x.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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H&R Block (HRB) Beats Q4 Earnings and Revenue Estimates
H&R Block Inc. (HRB - Free Report) reported fourth-quarter fiscal 2017 (ended Apr 30, 2017) adjusted earnings from continuing operations of $3.76 per share, which beat the Zacks Consensus Estimate of $3.51. Increase in earnings was attributed to a rise in revenues during the quarter.
GAAP earnings from continuing operations came in at $3.79 per share compared with $3.15 in the year-ago quarter.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. Price, Consensus and EPS Surprise | H&R Block, Inc. Quote
For full-year fiscal 2017, the company reported adjusted earnings from continuing operations of $1.96 per share compared with $1.53 in the prior year. This improvement was largely due to the company’s cost reduction efforts, which also enabled investment in key client-driving initiatives during the year.
Operational Performance
H&R Block reported revenues of $2,327.9 million in the fiscal fourth quarter compared with $2,297.5 million in the prior-year quarter. Revenues beat the Zacks Consensus Estimate of $2,316 million.
For fiscal 2017, the company reported revenues of $3,036.3 million, relatively flat with the prior year. This was due to improvement in the company's Assisted net average charge, partially offset by a decline in return volume.
Total operating expenses declined 3.7% year over year to $1,094.4 million driven by effective cost management.
Financial Position
H&R Block exited the quarter with cash and cash equivalents of $1,011.3 million compared with $896.8 million as of Apr 30, 2016. Total outstanding long-term debt was approximately $1,493 million.
For the fiscal year, net cash used for operating activities was $550.1 million, which was 3.3% higher than the year-ago period.
Share Repurchase and Dividend
In fiscal 2017, the company bought back approximately 14 million shares worth $317 million. As of Apr 30, 2017, 207.2 million shares were outstanding.
The company completed share repurchases under a $3.5 billion share repurchase program as of Aug 2015 which will run through Jun 2019. The company repurchased approximately 70.4 million shares, or 25.5% of shares outstanding at the beginning of the program for an aggregate purchase price of approximately $2.3 billion.
The board of directors declared a quarterly dividend of 24 cents per share, payable on Jul 3 to shareholders on record as of Jun 23. The company has been paying quarterly dividends to its shareholders since the company went public in 1962.
Peer Performance
Intuit Inc. (INTU - Free Report) reported adjusted earnings per share of $3.71, surpassing the Zacks Consensus Estimate of $3.67.
Zacks Rank & Key Picks
H&R Block presently carries a Zacks Rank #2 (Buy). A couple of other stocks in the Consumer Services Miscellaneous industry worth considering include Care.com, Inc. and Weight Watchers International, Inc. (WTW - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Care.com has a long-term earnings growth expectation of 15%. It has an average forward PE of 72.9x.
Weight Watchers has a long-term earnings growth expectation of 15%. It has an average forward PE of 21.2x.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>