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H&R Block (HRB) Q1 Earnings Beat Estimates, Improve Y/Y

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H&R Block, Inc. (HRB - Free Report) reported better-than-expected first-quarter fiscal 2021 results.

Adjusted earnings per share of 55 cents beat the Zacks Consensus Estimate by 48.7%.  The company had suffered a loss of 72 cents per share in the year-ago quarter. Revenues of $601 million surpassed the consensus estimate by 7.7% and increased more than 100% year over year.

This significant year-over-year improvement in both the top and bottom lines is due to the extended tax season in response to the coronavirus pandemic. The deadline for Federal filing was extended to Jul 15.

Shares of H&R Block have declined 39.7% over the past year compared with the 14.6% rally of the Zacks S&P 500 composite.

Other Quarterly Numbers

Earnings before interest, tax, depreciation and amortization from continuing operations came in at $195.7 million compared with a loss of $147.4 million in the year-ago quarter. Adjusted EBITDA margin from continuous operations came in at 32.6% in the quarter. Total operating expenses were $448.1 million, up 29.7% year over year.

H&R Block exited the quarter with cash and cash equivalents balance of $2.6 billion compared with $2.7 billion at the end of the prior quarter. Long-term debt and line-of-credit borrowings were $3.5 billion compared with $2.8 billion at the end of the previous quarter.

The company used $20.5 million of cash in operating activities and capex was $8.3 million. The company paid out dividends of $50 million in the quarter.

H&R Block currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Performance of Some Services Companies

Equifax (EFX - Free Report) reported second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year.

TransUnion (TRU - Free Report) reported second-quarter 2020 adjusted earnings of 66 cents per share that outpaced the consensus mark by 34.7% but declined 4.3% year over year. Total revenues of $634 million beat the consensus mark by 6.2% but decreased 4% year over year.

Rollins, Inc.’s (ROL - Free Report) reported second-quarter 2020 adjusted earnings of 23 cents per share beating the consensus mark by 35.3% and increasing 9.5% year over year. Revenues of $553.3 million beat the consensus mark by 2.2% and improved 5.6% year over year.

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