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Why Is H&R Block (HRB) Up 5.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for H&R Block (HRB - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
H&R Block Beats on Q2 Estimates
H&R Block, Inc. reported impressive second-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly adjusted loss per share came in at $1.27 against the Zacks Consensus Estimate of a loss of $1.58 per share. Loss contracted 7.3% on a year-over-year basis.
Revenues of $179.1 million exceeded the consensus estimate by 6.6% and increased 7.6% year over year. The top line was positively impacted by higher volumes and net average charge in the Assisted category, higher interest and fee income on Emerald AdvanceSM driven by an increase in Emerald AdvanceSM Loans and an early commencement to the offering period in the current year.
Other Quarterly Numbers
Revenues from U.S. tax preparation and related services came in at $99.4 million, increasing 9.2% from the year-ago figure. Revenues from Financial services came in at $8.9 million, 6.1% higher than the year-ago figure.
Loss before interest, taxes, depreciation and amortization came in at $231.4 million compared with a loss of $246.3 million in the year-ago quarter.
H&R Block exited the quarter with cash and cash equivalents of $321 million compared with $427 million at the end of the prior quarter. Long-term debt was $2.3 billion compared with $1.5 billion at the end of the previous quarter.
The company generated $607 million of cash from operating activities while capex was $19.8 million.
2024 Outlook
H&R Block continues to expect revenues in the range of $3.530-$3.585 billion. Adjusted EPS is projected to be between $4.1 and $4.3.
EBITDA is anticipated to be between $930 million and $965 million. The effective tax rate is expected to be around 23%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, H&R Block has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H&R Block has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
H&R Block belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Cimpress (CMPR - Free Report) , has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Cimpress reported revenues of $921.36 million in the last reported quarter, representing a year-over-year change of +9%. EPS of $2.14 for the same period compares with -$0.46 a year ago.
Cimpress is expected to post earnings of $0.14 per share for the current quarter, representing a year-over-year change of +114.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -34.4%.
Cimpress has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is H&R Block (HRB) Up 5.6% Since Last Earnings Report?
A month has gone by since the last earnings report for H&R Block (HRB - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
H&R Block Beats on Q2 Estimates
H&R Block, Inc. reported impressive second-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly adjusted loss per share came in at $1.27 against the Zacks Consensus Estimate of a loss of $1.58 per share. Loss contracted 7.3% on a year-over-year basis.
Revenues of $179.1 million exceeded the consensus estimate by 6.6% and increased 7.6% year over year. The top line was positively impacted by higher volumes and net average charge in the Assisted category, higher interest and fee income on Emerald AdvanceSM driven by an increase in Emerald AdvanceSM Loans and an early commencement to the offering period in the current year.
Other Quarterly Numbers
Revenues from U.S. tax preparation and related services came in at $99.4 million, increasing 9.2% from the year-ago figure. Revenues from Financial services came in at $8.9 million, 6.1% higher than the year-ago figure.
Loss before interest, taxes, depreciation and amortization came in at $231.4 million compared with a loss of $246.3 million in the year-ago quarter.
H&R Block exited the quarter with cash and cash equivalents of $321 million compared with $427 million at the end of the prior quarter. Long-term debt was $2.3 billion compared with $1.5 billion at the end of the previous quarter.
The company generated $607 million of cash from operating activities while capex was $19.8 million.
2024 Outlook
H&R Block continues to expect revenues in the range of $3.530-$3.585 billion. Adjusted EPS is projected to be between $4.1 and $4.3.
EBITDA is anticipated to be between $930 million and $965 million. The effective tax rate is expected to be around 23%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, H&R Block has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H&R Block has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
H&R Block belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Cimpress (CMPR - Free Report) , has gained 6.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.
Cimpress reported revenues of $921.36 million in the last reported quarter, representing a year-over-year change of +9%. EPS of $2.14 for the same period compares with -$0.46 a year ago.
Cimpress is expected to post earnings of $0.14 per share for the current quarter, representing a year-over-year change of +114.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -34.4%.
Cimpress has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.