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The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the past four quarters, with a surprise of 13.9% on average.
Q2 Expectations
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $150 million, indicating a sequential decline of 16.7%. The consensus mark for the bottom line is pegged at a loss of $1.48 per share compared with a loss of 99 cents per share registered in the prior quarter.
The expected sequential decline is mainly due to the seasonality of HRB’s business. As most of the company’s clients file their tax returns in the months of February, March and April, a significant majority of revenues from income tax return preparation and related services and products are generated in these three months. The company generally operates at a loss in the first two quarters of a fiscal year.
Overall, HRB is expected to continue well in its progress with Block Horizons — a five-year strategy focusing on using human expertise and technological infrastructure to drive innovation — in the quarter. The strategy 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.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for H&R Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
H&R Block has an Earnings ESP of 0.00% and a Zacks Rank #3.
Here are some stocks that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Avis Budget Group (CAR - Free Report) has an Earnings ESP of +7.40% and currently carries a Zacks Rank #3. The company is scheduled to report its fourth-quarter 2022 results on Feb 13.
The Zacks Consensus Estimate for CAR’s earnings has moved up 1.2% to $6.5 per share over the past 30 days.
Verisk Analytics (VRSK - Free Report) has an Earnings ESP of +0.75% and currently carries a Zacks Rank #2. The company is scheduled to report its fourth-quarter 2022 results on Feb 28.
The Zacks Consensus Estimate for VRSK’s earnings has increased 0.9% to $1.17 per share over the past 30 days.
Gartner (IT - Free Report) has an Earnings ESP of +0.52% and currently carries a Zacks Rank #3. The company is scheduled to report its fourth-quarter 2022 results on Feb 7.
The Zacks Consensus Estimate for IT’s earnings has moved up 0.4% to $2.57 per share over the past 30 days.
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H&R Block (HRB) to Report Q2 Earnings: What's in the Cards?
H&R Block, Inc. (HRB - Free Report) is scheduled to report its second-quarter fiscal 2023 results on Feb 7, after the bell.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the past four quarters, with a surprise of 13.9% on average.
Q2 Expectations
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $150 million, indicating a sequential decline of 16.7%. The consensus mark for the bottom line is pegged at a loss of $1.48 per share compared with a loss of 99 cents per share registered in the prior quarter.
The expected sequential decline is mainly due to the seasonality of HRB’s business. As most of the company’s clients file their tax returns in the months of February, March and April, a significant majority of revenues from income tax return preparation and related services and products are generated in these three months. The company generally operates at a loss in the first two quarters of a fiscal year.
Overall, HRB is expected to continue well in its progress with Block Horizons — a five-year strategy focusing on using human expertise and technological infrastructure to drive innovation — in the quarter. The strategy 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.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for H&R Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
H&R Block has an Earnings ESP of 0.00% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
H&R Block, Inc. Price and EPS Surprise
H&R Block, Inc. price-eps-surprise | H&R Block, Inc. Quote
Stocks That Warrant a Look
Here are some stocks that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Avis Budget Group (CAR - Free Report) has an Earnings ESP of +7.40% and currently carries a Zacks Rank #3. The company is scheduled to report its fourth-quarter 2022 results on Feb 13.
The Zacks Consensus Estimate for CAR’s earnings has moved up 1.2% to $6.5 per share over the past 30 days.
Verisk Analytics (VRSK - Free Report) has an Earnings ESP of +0.75% and currently carries a Zacks Rank #2. The company is scheduled to report its fourth-quarter 2022 results on Feb 28.
The Zacks Consensus Estimate for VRSK’s earnings has increased 0.9% to $1.17 per share over the past 30 days.
Gartner (IT - Free Report) has an Earnings ESP of +0.52% and currently carries a Zacks Rank #3. The company is scheduled to report its fourth-quarter 2022 results on Feb 7.
The Zacks Consensus Estimate for IT’s earnings has moved up 0.4% to $2.57 per share over the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.