Analysts on Wall Street project that H&R Block (HRB) will announce quarterly earnings of $2.81 per share in its forthcoming report, representing an increase of 48.7% year over year. Revenues are projected to reach $1.07 billion, increasing 0.8% from the same quarter last year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Before a c ...

Core Insights - H&R Block has appointed Jason Lenhart as Senior Vice President and Chief Technology Officer, and Monika Mehrotra as Senior Vice President, Operations & Technology, to enhance its transformation and financial services [1][2]. Leadership Appointments - Jason Lenhart will lead engineering teams to develop scalable, product-driven solutions, leveraging his previous experience at JetBlue where he oversaw software development [2]. - Monika Mehrotra will manage financial products operations, fraud prevention, and global systems, bringing her experience from TransUnion to drive efficiency and innovation [4]. Educational Background - Jason Lenhart holds a Bachelor of Science in Mechanical Engineering from the University of Tennessee, Knoxville, and a Master of Science in Computer Science from Drexel University [3]. - Monika Mehrotra has a Bachelor of Technology in Computer Science from the Institute of Engineering and Technology in India and an MBA in Finance from the University of Chicago Booth School of Business [5]. Company Overview - H&R Block provides global tax preparation services, financial products, and small-business solutions, combining digital innovation with human expertise [7].

Company Overview - H&R Block, Inc. (NYSE: HRB) provides global tax preparation services, financial products, and small-business solutions, blending digital innovation with human expertise [4] Upcoming Financial Results - H&R Block will report its fourth quarter and fiscal 2025 full year results on August 12, 2025, after the market close [1] - A conference call for analysts, institutional investors, and shareholders will take place on the same day at 4:30 p.m. Eastern time to discuss fiscal 2025 results and fiscal 2026 outlook [2] Conference Call Details - Participants must register to join the live conference call, receiving a dial-in number and unique PIN upon registration [2] - The call will also be webcast in a listen-only format for media and the public, with a replay available for 90 days after the event [3]

Key Takeaways HRB has returned 6.2% YTD, outperforming its industry's 4.8% decline, with a Zacks Rank #2 and VGM Score of A. Fiscal 2025 EPS is projected to grow 18.4% to $5.20, with long-term earnings growth pegged at 12.5%. Programs like "Make It Legit" and Fund Her Future support gig workers and women entrepreneurs with tax tools.H&R Block, Inc. (HRB) is a tax return preparation service provider that has performed decently year to date and has the potential to sustain momentum in the near term.What Mak ...

Market Overview - The market is currently at an all-time high, with speculative stocks that lack profits experiencing significant increases in value [1] - Conversely, more stable companies are not receiving the same level of investor interest [1] Investment Strategy - A long/short partnership approach is suggested, emphasizing the importance of fundamental analysis and skepticism towards pro-forma figures declared by companies [2] Analyst Position - The analyst holds a beneficial long position in the shares of HRB, indicating a personal investment interest in the company [3]

Core Viewpoint - H&R Block has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending June 2025, H&R Block is expected to earn $5.22 per share, with a 0.3% increase in the Zacks Consensus Estimate over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that impact stock prices [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - H&R Block's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Company Overview - H&R Block shares have decreased by approximately 1.1% since the last earnings report, underperforming the S&P 500 [1] - The most recent earnings report indicates a downward trend in estimates, with a consensus estimate shift of -5.07% [2] Performance Metrics - H&R Block has a strong Growth Score of A, but a low Momentum Score of F, while maintaining a value grade of A, placing it in the top quintile for value investment strategy [3] - The aggregate VGM Score for H&R Block is A, which is significant for investors not focused on a single strategy [3] Outlook - The overall estimates for H&R Block have been trending downward, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Comparison - H&R Block is part of the Zacks Consumer Services - Miscellaneous industry, where Cimpress (CMPR) has gained 6.5% over the past month [5] - Cimpress reported revenues of $789.47 million for the last quarter, reflecting a year-over-year increase of +1.1%, with an EPS of -$0.33 compared to -$0.15 a year ago [5] - For the current quarter, Cimpress is expected to post earnings of $0.97 per share, indicating a significant change of -77.6% from the previous year, with a Zacks Consensus Estimate change of -18.9% over the last 30 days [6]

Company Performance - H&R Block, Inc. (HRB) stock has gained 17.5% over the past year, outperforming the industry's 32% decline and the Zacks S&P 500 composite's 13.2% growth [1] - In the third quarter of fiscal 2025, H&R Block reported adjusted earnings of $5.38 per share, beating the Zacks Consensus Estimate by 5.1% and increasing 8.9% year-over-year [2] - Total revenues for the same quarter were $2.28 billion, slightly exceeding the Zacks Consensus Estimate by 1.4% and reflecting a 4.2% year-over-year increase [2] Revenue Growth Drivers - The growth in assisted tax preparation revenue is attributed to a surge in net average charges and higher company-owned tax return volumes [3] - The contribution of the assisted tax preparation segment to total revenue has increased from approximately 60% in fiscal year 2022 to 63% in fiscal year 2024, with revenue rates rising by 3.5% and 5% in fiscal 2023 and 2024, respectively [3] Mobile Banking Platform - H&R Block's mobile banking platform, Spruce, has nearly 476,000 sign-ups and is approaching $1 billion in customer deposits as of June 2024 [4] - Close to 50% of fiscal 2024 deposits came from non-tax sources, indicating strong trends in the first quarter of fiscal 2025 [4] Technological Innovations - The incorporation of AI Tax Assist, a generative AI-powered technology, has boosted DIY tax preparation revenues, contributing nearly $350 million, or about 10% of total revenue, with an 11% increase from the previous year [5] - Collaboration with OpenAI is expected to enhance AI Tax Assist, attracting more customers and further boosting revenue [5] Competitive Landscape - The company operates in a highly competitive industry, necessitating continuous innovation and differentiation while managing costs effectively [6] - The need for investment in technology and talent to maintain a competitive edge complicates the balance between growth and profitability [6] Liquidity Position - H&R Block's current ratio at the end of the third quarter of fiscal 2025 was 0.78, lower than the industry's 0.92, indicating a decline of 30.8% from the previous year due to increased current debt [7] - A current ratio below 1 signals inefficiency in meeting short-term obligations [7]

Core Insights - H&R Block, Inc. reported strong third-quarter results for fiscal 2025, with adjusted earnings of $5.38 per share, exceeding the Zacks Consensus Estimate by 5.1% and increasing 8.9% year-over-year. Total revenues reached $2.28 billion, slightly surpassing the estimate by 1.4% and growing 4.2% year-over-year [1] Financial Performance - Revenues from U.S. tax preparation and related services were $2.14 billion, down 5.2% year-over-year. Financial services revenues were $54.5 million, a decline of 12.6%. International revenues decreased by 11.5% to $60.4 million, while Wave revenues increased by 13.3% to $26.7 million [3] - The company ended the quarter with cash and cash equivalents of $773 million, down from $794.6 million year-over-year. Long-term debt decreased to $1.14 billion from $1.5 billion in the previous year. Operating activities used $429.3 million in cash, with capital expenditures at $71.8 million [4] FY25 Outlook - For fiscal 2025, H&R Block expects revenues between $3.69 billion and $3.75 billion, with a midpoint of $3.72 billion aligning with the Zacks Consensus Estimate. Adjusted EPS is projected in the range of $5.15 to $5.35, with a midpoint of $5.25 above the consensus estimate of $5.23. EBITDA is expected to be between $975 million and $1.02 billion, with an effective tax rate of 13% [5] Stock Performance - H&R Block shares have increased by 25.3% over the past year, significantly outperforming the industry, which has seen an 18% decline [2]

H&R Block, Inc. (NYSE: HRB ) provides do-it-yourself and assisted tax assistance services. The company generates its revenues primarily from tax preparation in the U.S., but also from franchise royalties, related services, and international operations in CanadaI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securiti ...