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Five-year Strategy Benefits H&R Block (HRB) Amid High Debt
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H&R Block, Inc. (HRB - Free Report) shares have appreciated 28.3% in the past year, against a 18.8% decline of the industry it belongs to. The company is currently benefiting from a solid five-year strategy and shareholder-friendly measures.
Image Source: Zacks Investment Research
H&R Block reported a first-quarter fiscal 2022 loss (excluding 7 cents from non-recurring items) of 78 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.05. Operating revenues of $192.6 million surpassed the Zacks Consensus Estimate by 14.8%.
How is H&R Block Doing?
H&R Block has a five-year strategy called Block Horizons in place. The strategy is focused on utilizing human expertise and technological infrastructure to drive innovation. It aims at building strong relationships with small businesses through Wave and Block Advisors, developing Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and making taxation faster and more personalized through integrating human expertise with digital tools. Block Horizons is expected to help the company generate sustainable revenues and boost operating profit, improve return on investments, and maintain a strong balance sheet and liquidity position.
H&R Block has a consistent track record of returning capital to shareholders through dividends and share repurchases. The company paid out $195.1 million, $204.9 million and $205.5 million as dividends in fiscal years 2021, 2020 and 2019, respectively. It repurchased shares worth $191.3 million, $256.2 million and $189.9 million, respectively, in 2021, 2020 and 2019.
Meanwhile, H&R Block’s cash and cash equivalent balance of $1.03 billion at the end of first-quarter fiscal 2021 was well below the debt level of $1.98 billion, underscoring that the company doesn’t have enough cash to meet its debt burden.
Avis Budget has an expected earnings growth rate of around 420.6% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 628.7% so far this year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 447.8% for the current fiscal year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 200% so far this year. CCRN has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 87.5% so far this year. CRA International has a long-term earnings growth of 15.5%. FDS carries a Zacks #2 Rank.
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Five-year Strategy Benefits H&R Block (HRB) Amid High Debt
H&R Block, Inc. (HRB - Free Report) shares have appreciated 28.3% in the past year, against a 18.8% decline of the industry it belongs to. The company is currently benefiting from a solid five-year strategy and shareholder-friendly measures.
H&R Block reported a first-quarter fiscal 2022 loss (excluding 7 cents from non-recurring items) of 78 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.05. Operating revenues of $192.6 million surpassed the Zacks Consensus Estimate by 14.8%.
How is H&R Block Doing?
H&R Block has a five-year strategy called Block Horizons in place. The strategy is focused on utilizing human expertise and technological infrastructure to drive innovation. It aims at building strong relationships with small businesses through Wave and Block Advisors, developing Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and making taxation faster and more personalized through integrating human expertise with digital tools. Block Horizons is expected to help the company generate sustainable revenues and boost operating profit, improve return on investments, and maintain a strong balance sheet and liquidity position.
H&R Block has a consistent track record of returning capital to shareholders through dividends and share repurchases. The company paid out $195.1 million, $204.9 million and $205.5 million as dividends in fiscal years 2021, 2020 and 2019, respectively. It repurchased shares worth $191.3 million, $256.2 million and $189.9 million, respectively, in 2021, 2020 and 2019.
Meanwhile, H&R Block’s cash and cash equivalent balance of $1.03 billion at the end of first-quarter fiscal 2021 was well below the debt level of $1.98 billion, underscoring that the company doesn’t have enough cash to meet its debt burden.
Zacks Rank & Other Stocks to Consider
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.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget has an expected earnings growth rate of around 420.6% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 628.7% so far this year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 447.8% for the current fiscal year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 200% so far this year. CCRN has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 87.5% so far this year. CRA International has a long-term earnings growth of 15.5%. FDS carries a Zacks #2 Rank.