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H&R Block (HRB) Q4 Earnings & Revenues Top Estimates, Up Y/Y

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H&R Block Inc. (HRB - Free Report) reported fourth-quarter fiscal 2018 (ended Apr 30, 2018) adjusted earnings from continuing operations of $5.43 per share, which surpassed the Zacks Consensus Estimate of $5.26. Results were driven by an increase in revenues during the quarter.

GAAP earnings from continuing operations came in at $5.47 per share compared with $3.79 in the year-ago quarter.

For fiscal 2018, the company reported adjusted earnings from continuing operations of $2.98 per share compared with $1.96 in the prior year. This improvement can be attributed H&R Block’s lower effective tax rate and improved pretax earnings.

Operational Performance

In the reported quarter, H&R Block’s revenues came in at $2,392.8 million compared with $2,327.9 million in the prior-year quarter. The top-line figure also outpaced the Zacks Consensus Estimate of $2,328 million.

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

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

 

For fiscal 2018, the company reported revenues of $3,159.9 million compared with $3,036.3 million in the prior year. The upside was driven by increased U.S. Assisted tax preparation fees owing to favorable net average charge and mix, partially offset by a decrease in return volume.

Total operating expenses were up 4.4% year over year to $1,142.4 million owing to higher compensation costs and occupancy costs.

Financial Position

H&R Block exited the quarter with cash and cash equivalents of $1,544.9 million compared with $1,011.3 million as of Apr 30, 2017. Total outstanding long-term debt was approximately $1,494.6 million, relatively flat with the prior-year quarter.

For the fiscal year, net cash provided by operating activities was $850 million, which was 53.9% higher than the year-ago period.

Dividend

H&R Block’s board of directors declared a quarterly dividend of 25 cents per share payable on Jul 2, 2018 to shareholders of record as of Jun 22. Notably, the company has been paying uninterrupted quarterly dividends to its shareholders since it went public in 1962.

Zacks Rank & Other Stocks to Consider

H&R Block currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are Weight Watchers International Inc (WTW - Free Report) , SP Plus Corporation (SP - Free Report) and Interface, Inc. (TILE - Free Report) . While Weight Watchers International sports a Zacks Rank #1 (Strong Buy), SP Plus and Interface carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Weight Watchers International surpassed estimates in the trailing four quarters, with an average beat of 126.4%.

SP Plus exceeded estimates thrice in the trailing four quarters, with an average beat of 12%.

Interface outpaced estimates in the trailing four quarters, with an average beat of 5.2%.

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