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H&R Block (HRB) Banks on Five-Year Strategy Amid High Debt
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H&R Block, Inc. (HRB - Free Report) shares have appreciated 30.5% over the past year against 31.6% decline of the industry it belongs to.
The company recently reported second-quarter fiscal 2022 adjusted loss per share of $1.02 that beat the Zacks Consensus Estimate of a loss of $1.28. Revenues of $158.8 million surpassed the consensus estimate by 8.3%.
H&R Block has a five-year strategy called Block Horizons in place. The strategy is focused on using human expertise and technological infrastructure to drive innovation. It aims to build strong relationships with small businesses through Wave and Block Advisors, develop Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and make taxation faster and more personalized by integrating human expertise with digital tools. Block Horizons is expected to help the company deliver sustainable revenues and operating profit growth, improve return on investments, and maintain strong balance sheet and liquidity positions.
We believe the main drivers of the company’s post-pandemic performance will be the digital enablement of its business, client addition and retention in both Assisted and DIY, greater usage of AI, and machine learning for product improvement and expansion in small business.
H&R Block has a consistent track record of returning capital to shareholders through dividends and share repurchases. The company paid $195.1 million, $204.9 million and $205.5 million as dividends in the 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.
H&R Block has more outstanding long-term debt than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $460 million compared to the long-term debt level of $1.8 billion.
Zacks Rank & Stocks to Consider
H&R Block currently carries a Zacks Rank #3 (Hold).
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H&R Block (HRB) Banks on Five-Year Strategy Amid High Debt
H&R Block, Inc. (HRB - Free Report) shares have appreciated 30.5% over the past year against 31.6% decline of the industry it belongs to.
The company recently reported second-quarter fiscal 2022 adjusted loss per share of $1.02 that beat the Zacks Consensus Estimate of a loss of $1.28. Revenues of $158.8 million surpassed the consensus estimate by 8.3%.
H&R Block, Inc. Price
H&R Block, Inc. price | H&R Block, Inc. Quote
How is H&R Block Doing?
H&R Block has a five-year strategy called Block Horizons in place. The strategy is focused on using human expertise and technological infrastructure to drive innovation. It aims to build strong relationships with small businesses through Wave and Block Advisors, develop Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and make taxation faster and more personalized by integrating human expertise with digital tools. Block Horizons is expected to help the company deliver sustainable revenues and operating profit growth, improve return on investments, and maintain strong balance sheet and liquidity positions.
We believe the main drivers of the company’s post-pandemic performance will be the digital enablement of its business, client addition and retention in both Assisted and DIY, greater usage of AI, and machine learning for product improvement and expansion in small business.
H&R Block has a consistent track record of returning capital to shareholders through dividends and share repurchases. The company paid $195.1 million, $204.9 million and $205.5 million as dividends in the 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.
H&R Block has more outstanding long-term debt than cash. Cash and cash equivalent balance at the end of fourth-quarter 2021 was $460 million compared to the long-term debt level of $1.8 billion.
Zacks Rank & Stocks to Consider
H&R Block currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Cross Country Healthcare (CCRN - Free Report) , Clean Harbors (CLH - Free Report) and Nielsen .
Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy). The company has a long-term earnings growth of 21.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare’s shares have surged 102.1% in the past year. CCRN pulled off a trailing four-quarter earnings surprise of 75%, on average.
Clean Harbors carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of 3.4% for 2022.
Clean Harbors delivered a trailing four-quarter earnings surprise of 50.5%, on average. CLH’s shares have jumped 12.8% in the past year.
Nielsen also carries a Zacks Rank #2. The company has an expected earnings growth rate of 2.3% for 2022.
Nielsen delivered a trailing four-quarter earnings surprise of 25.1%, on average. NLSN’s shares have declined 24.1% in the past year.