We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass estimates in a particular quarter, offering a lucrative opportunity for short-term investors to cash in. However, relying solely on sales and earnings numbers may not yield the desired long-term returns. For those seeking sustainable investment growth, a deeper dive into the company's financial health and stability is ...

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. H&R Block (HRB) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. H&R Block is a member of our Consumer Discretionary group, which includes 280 different companies and currently sits at #11 in th ...

The broader U.S. equity markets have witnessed a steady uptrend over the past couple of trading sessions, buoyed by strong signals from Federal Reserve Chair Jerome Powell about interest rate cuts happening soon. Despite any definite time frame or the quantum of the proposed rate cuts, markets were quick to respond positively and are currently trading in the vicinity of all-time highs. This followed one of the worst performances at the beginning of the month due to a global market sell-off with the unwindin ...

An ill-informed investor can lose cash if he wagers on a stock only on the basis of the numbers flashing on a real-time stock screen. A critical analysis of a company's financial background is a must for a better investment decision, especially at a time when the stock market is juggling myriad issues. Often, investors evaluate a company's performance by simply looking at its sales and earnings, which sometimes do not reveal the real picture. To be more precise, they do not tell whether a company's fundamen ...

H&R Block, Inc. (HRB) reported impressive fourth-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. HRB's adjusted earnings (adjusting 8 cents from non-recurring items) of $1.9 per share surpassed the Zacks Consensus Estimate by 10.5% but declined 7.8% from the year-ago quarter. Revenues of $1.1 billion beat the consensus estimate by 2.6% and increased 3% on a year-over-year basis. H&R Block's shares have gained 48.2% over the past year, significantly out ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by th ...

Financial Data and Key Metrics - Revenue for FY '24 was $3.6 billion, a 4% increase ($138 million) driven by higher net average charge and company-owned volumes in the Assisted category, and greater online paid returns in DIY, partially offset by lower Emerald Card activity [18] - Total operating expenses increased by 3% ($82 million) to $2.8 billion, primarily due to higher labor costs and bad debt expense, partially offset by lower consulting and outsourced services [19] - Pretax income increased by 7% ($51 million) to $762 million, with an effective tax rate of 21.6% compared to 21% in the prior year [19] - EBITDA grew by 5% to $963 million, outpacing revenue growth [20] - Earnings per share (EPS) from continuing operations increased by 16% to $4.14, while adjusted EPS increased by 15% to $4.41 [20] - Free cash flow for FY '24 was over $650 million, driven by depreciation and amortization exceeding CapEx [27] Business Line Performance - DIY business saw strong revenue growth of 11%, driven by paid client growth and NAC (Net Average Charge) increases, with AI Tax Assist contributing to higher new client conversion [5][10] - Assisted business grew NAC and attracted higher-value clients, with positive trends in small business tax services [6] - Small Business segment delivered mid-single-digit revenue growth, with NAC up 3% and double-digit growth in bookkeeping and payroll [7] - Wave revenue grew 7%, driven by the launch of Pro-Tier and paid receipt products, with expectations for continued positive trends in FY '25 [8] - Spruce, the mobile banking platform, reached 476,000 sign-ups and nearly $1 billion in customer deposits, with 50% of deposits coming from non-tax sources [9] Market Performance - The company expects industry growth of 1% in FY '25, with DIY growing slightly faster than Assisted, consistent with long-term trends [38] - The company aims to maintain overall market share, with a focus on improving Assisted channel performance to stabilize share [39][40] Strategy and Competitive Landscape - The company continues to execute its Block Horizons strategy, focusing on Small Business, Wave, and Financial Products, with significant progress in all three areas [7][8][9] - The company is investing in AI-driven tools like AI Tax Assist and gen-AI use cases to drive future efficiencies and cost savings [10] - The company is focused on improving the client experience in the Assisted channel, particularly for new clients, to enhance conversion rates [26][41] Management Commentary on Operating Environment and Future Outlook - The company expects FY '25 revenue to be in the range of $3.69 billion to $3.75 billion, EBITDA between $975 million and $1.02 billion, and EPS between $5.15 and $5.35, benefiting from a lower effective tax rate of approximately 13% [22][23] - The company anticipates ongoing revenue growth drivers in Wave and Small Business, with continued opportunistic repurchases of franchise locations [22] - Management remains confident in the company's ability to leverage its cost structure to grow EBITDA faster than revenue and EPS faster than EBITDA [23] Other Key Information - The company announced a 17% increase in its quarterly dividend to $37.5 per share and a new $1.5 billion share repurchase authorization, continuing its strong capital allocation practices [6][21] - Tony Bowen, CFO, is retiring after 20 years with the company, and Tiffany Mason will succeed him as CFO starting September 13th [13][16] - Scott Manuel joined as Chief Strategy and Operations Officer, focusing on long-term enterprise strategy and execution [17] Q&A Session Summary Question: How does the company plan to maintain market share in the Assisted channel for FY '25? - The company is focusing on improving the client experience, particularly for new clients, by better managing expectations and enhancing the value proposition [26][41] Question: What are the expectations for free cash flow in FY '25? - Free cash flow is expected to remain strong, with depreciation and amortization continuing to exceed CapEx, maintaining a run rate of over $650 million [27] Question: How does the company view the impact of the upcoming election on the tax season? - The company does not expect the election to directly impact the tax filing season, but potential policy changes post-election could influence consumer behavior [30][31] Question: What are the levers for sustaining DIY market share growth? - The company is focused on delivering a competitive product, aggressive marketing against competitors like TurboTax, and continuous product improvements [33][34] Question: What is the outlook for margin expansion in FY '25 and beyond? - The company expects EBITDA to continue growing faster than revenue, leveraging cost structure improvements and productivity gains, with ongoing margin expansion [36][37] Question: What are the expectations for Assisted and DIY growth in FY '25? - DIY is expected to grow slightly faster than Assisted, consistent with long-term industry trends, with overall industry growth projected at 1% [38] Question: How will share repurchases impact FY '25 EPS? - The company expects to continue its share repurchase program opportunistically, contributing to EPS growth, with most repurchases typically occurring in the first half of the fiscal year [46][47] Question: What is the impact of the California extension on FY '24 revenue and FY '25 expectations? - The California extension contributed approximately 1 point to industry volume and 0.75 points to revenue in FY '24, with no significant impact expected in FY '25 [52] Question: When will the tax benefit impact EPS in FY '25? - The tax benefit is expected to impact EPS in a particular quarter, likely Q2 or later, once audit matters are resolved [50][51]

H&R BLOCK FY24 Financial Results Conference Call FY24 Financial Results Conference Call August 15, 2024 H&R BLOCK. H&R BLOCK FY24 Financial Results Conference Call Michaella Gallina VP, Investor Relations & ESG CFO, Wave 2 | --- | --- ...

H&R Block (HRB) reported $1.06 billion in revenue for the quarter ended June 2024, representing a year-overyear increase of 3%. EPS of $1.89 for the same period compares to $2.05 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.04 billion, representing a surprise of +2.58%. The company delivered an EPS surprise of +10.53%, with the consensus EPS estimate being $1.71. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

H&R Block (HRB) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.71 per share. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this tax preparer would post earnings of $4.66 per share when it actually produced earnings of $4.94, delivering a surprise of 6.01%. Over the last four quarters, the company ha ...