H&R Block, Inc. (HRB - Free Report) reported better-than-expected third-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 6 cents from non-recurring items) of $4.11 beat the Zacks Consensus Estimate by 17.1% and surged more than 400% year over year.
Revenues of $2.1 billion surpassed the consensus estimate by 6.6% but dropped 11.4% year over year.
Shares of H&R Block have gained 1.9% over the past year against a 34.7% decline of the industry it belongs to.
Other Quarterly Numbers
Pretax income surged $33 million to $862 million. Total operating expenses of $1.2 billion were up 4% year over year. The uptick was due to greater field compensation and marketing expenses.
H&R Block exited the quarter with cash and cash equivalents balance of $1041.7 million compared with $336.3 million at the end of the prior quarter. Long-term debt was $1.5 billion compared with $1.8 billion at the end of the previous quarter.
H&R Block generated $1286.7 million of cash in operating activities while capex was $13.3 million. HRB paid out dividends of $46.5 million in the quarter.
2022 Outlook
HRB revised its fiscal 2022 outlook on a strong tax-season performance.
H&R Block expects revenues in the range of $3.375-$3.425 billion (prior view: from $3.25 billion to $3.35 billion) for 2022, the midpoint ($3.4 billion) being above the current Zacks Consensus Estimate of $3.32 billion.
EBITDA is expected between $850 million and $875 million (prior view: $765 million and $815 million). The tax rate is now expected to be lower in the range of 14-16%.
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.
Earnings Snapshots
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.
Omnicom reported impressive first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.
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H&R Block, Inc. (HRB - Free Report) reported better-than-expected third-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 6 cents from non-recurring items) of $4.11 beat the Zacks Consensus Estimate by 17.1% and surged more than 400% year over year.
Revenues of $2.1 billion surpassed the consensus estimate by 6.6% but dropped 11.4% year over year.
Shares of H&R Block have gained 1.9% over the past year against a 34.7% decline of the industry it belongs to.
Other Quarterly Numbers
Pretax income surged $33 million to $862 million. Total operating expenses of $1.2 billion were up 4% year over year. The uptick was due to greater field compensation and marketing expenses.
H&R Block exited the quarter with cash and cash equivalents balance of $1041.7 million compared with $336.3 million at the end of the prior quarter. Long-term debt was $1.5 billion compared with $1.8 billion at the end of the previous quarter.
H&R Block generated $1286.7 million of cash in operating activities while capex was $13.3 million. HRB paid out dividends of $46.5 million in the quarter.
2022 Outlook
HRB revised its fiscal 2022 outlook on a strong tax-season performance.
H&R Block expects revenues in the range of $3.375-$3.425 billion (prior view: from $3.25 billion to $3.35 billion) for 2022, the midpoint ($3.4 billion) being above the current Zacks Consensus Estimate of $3.32 billion.
EBITDA is expected between $850 million and $875 million (prior view: $765 million and $815 million). The tax rate is now expected to be lower in the range of 14-16%.
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.
Earnings Snapshots
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis.
Omnicom reported impressive first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax reported better-than-expected first-quarter 2022 results. Adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. Revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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