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H&R Block's (HRB) Q4 Earnings and Revenues Beat Estimates

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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 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.

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