We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adjusted earnings per share of $5.16 came above the Zacks Consensus Estimate of $5.11 and increased 71.4% year over year. Revenues of $2.3 billion surpassed the consensus estimate by a slight margin and increased 28.7% year over year.
Shares of H&R Block have gained 40.1% over the past year, significantly outperforming the 9.4% rally of the industry it belongs to.
Service revenues of $2.1 billion increased 29% year over year. Royalty, product and other revenues came in at $217.6 million, up 25.2% year over year. Adjusted EBITDA came in at $1.1 billion, up 13.7% year over year. Adjusted EBITDA margin of 48.4% improved 310 basis point year over year.
H&R Block exited the quarter with cash and cash equivalents balance of $934.3 million compared with $280 million at the end of the prior quarter. Long-term debt and line-of-credit borrowings were $1.5 billion compared with $2.4 billion at the end of the previous quarter.
H&R Block generated $1.5 billion of cash in operating activities and capex was $4.7 million. The company paid out dividends of $47 million in the quarter.
2021 Outlook
H&R Block expects revenues in the range of $3.25 billion to $3.35 billion in 2022, below the current Zacks Consensus Estimate of $3.41 billion. EBITDA is expected to be between $765 million and $815 million.
H&R Block currently carries a Zacks Rank #2 (Buy).
Latest Performance of Some Other Service Providers
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
Image: Bigstock
H&R Block's (HRB) Q4 Earnings and Revenues Beat Estimates
H&R Block, Inc. (HRB - Free Report) reported better-than-expected fourth-quarter fiscal 2021 results.
Adjusted earnings per share of $5.16 came above the Zacks Consensus Estimate of $5.11 and increased 71.4% year over year. Revenues of $2.3 billion surpassed the consensus estimate by a slight margin and increased 28.7% year over year.
Shares of H&R Block have gained 40.1% over the past year, significantly outperforming the 9.4% rally of the industry it belongs to.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote
Quarterly Numbers in Detail
Service revenues of $2.1 billion increased 29% year over year. Royalty, product and other revenues came in at $217.6 million, up 25.2% year over year. Adjusted EBITDA came in at $1.1 billion, up 13.7% year over year. Adjusted EBITDA margin of 48.4% improved 310 basis point year over year.
H&R Block exited the quarter with cash and cash equivalents balance of $934.3 million compared with $280 million at the end of the prior quarter. Long-term debt and line-of-credit borrowings were $1.5 billion compared with $2.4 billion at the end of the previous quarter.
H&R Block generated $1.5 billion of cash in operating activities and capex was $4.7 million. The company paid out dividends of $47 million in the quarter.
2021 Outlook
H&R Block expects revenues in the range of $3.25 billion to $3.35 billion in 2022, below the current Zacks Consensus Estimate of $3.41 billion. EBITDA is expected to be between $765 million and $815 million.
H&R Block currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Latest Performance of Some Other Service Providers
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>