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H&R Block (HRB) Beats Q1 Earnings and Revenue Estimates

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H&R Block Inc. (HRB - Free Report) reported first-quarter fiscal 2018 (ended Jul 31, 2017) adjusted loss from continuing operations of 62 cents per share, narrower than the Zacks Consensus Estimate of loss of 63 cents. Better-than-expected results were attributable to a rise in revenues during the quarter.

GAAP loss from continuing operations came in at 63 cents per share compared with 56 cents in the year-ago quarter.           

Operational Performance

H&R Block reported revenues of $137.8 million in the fiscal first quarter compared with $125.2 million in the prior-year quarter. Revenues beat the Zacks Consensus Estimate of $130 million.

Total operating expenses increased 4.2% year over year to $323 million, due to higher occupancy, amortization, and compensation costs.

Financial Position

H&R Block exited the quarter with cash and cash equivalents of $551.6 million compared with $306.9 million as of Jul 31, 2016. Total outstanding long-term debt was approximately $1,493 million.

For the fiscal first quarter, net cash used for operating activities was $409.1 million, compared with $458 in the year-ago quarter.

Dividend

The board of directors declared a quarterly dividend of 24 cents per share, payable on Oct 2 to shareholders on record as of Sep 13. The company has been paying quarterly dividends to its shareholders since the company went public in 1962.

H&R Block, Inc. Price, Consensus and EPS Surprise

 

H&R Block, Inc. Price, Consensus and EPS Surprise | H&R Block, Inc. Quote

Peer Performance

Intuit Inc. (INTU - Free Report) reported stellar fourth-quarter fiscal 2017 results. The company reported non-GAAP income (excluding stock-based compensation, amortization and other one-time items) from continuing operations of 20 cents per share, surpassing the Zacks Consensus Estimate of 16 cents.

Zacks Rank & Stocks to Consider

H&R Block presently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the industry are Weight Watchers International, Inc. (WTW - Free Report) and SP Plus Corporation (SP - Free Report) . SP Plus carries a Zacks Rank #2 (Buy), while Weight Watchers sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.

SP Plus has a long-term earnings growth expectation of 10%. It has an average forward PE of 22.5x.

Weight Watchers has a long-term earnings growth expectation of 15%. It has an average forward PE of 32.7x.

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