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H&R Block (HRB) Matches Q4 Earnings Estimate, Revenues Beat

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H&R Block, Inc.’s (HRB - Free Report) fourth-quarter fiscal 2020 earnings matched the Zacks Consensus Estimate while revenues surpassed the same.

Adjusted earnings per share came in at $3.01 down 30.3% year over year. Revenues of $1.81 billion surpassed the consensus estimate by 4.3% and declined 22.3% year over year.

HR Block, Inc. EPS Diluted (TTM)

The year-over-year decline in both top and bottom lines is due to delayed tax season in response to the coronavirus pandemic. The deadline for Federal filing has been extended to Jul 15. Moreover, as small businesses have been badly hit by the pandemic, volumes and revenues through the company’s Wave payments platform were low in the quarter.

Shares of H&R Block have declined 36.7% over the past year, against the 5% rally of the Zacks S&P 500 composite.

Other Quarterly Numbers

Adjusted EBITDA from continuing operations came in at $819.62 million, down 31.5% year over year. Adjusted EBITDA margin of 45.3% from continuing operations declined from 51.3% in the year-ago quarter. Total operating expenses were $1.14 billion, down 3.3% year over year.

H&R Block exited the quarter with cash and cash equivalents balance of $2.66 billion compared with $192.34 million at the end of the prior quarter. Long-term debt and line of credit borrowings were $2.85 billion.

The company generated $1.58 billion of cash from operating activities and capex was $15.18 million. It paid out dividends of $50 million in the quarter.

H&R Block currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Performance of Some Other Business Services Companies

S&P Global Inc.’s (SPGI - Free Report) first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3 (Hold).

IQVIA Holdings Inc.’s (IQV - Free Report) first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.

Insperity, Inc.’s (NSP - Free Report) first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #4 (Sell).

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