We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
H&R Block (HRB) Down 5.7% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for H&R Block (HRB - Free Report) . Shares have lost about 5.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is H&R Block due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
H&R Block’s Q2 Earnings Loss
H&R Block, Inc. (HRB - Free Report) reported a second-quarter fiscal 2023 adjusted loss per share of $1.37, beating the Zacks Consensus Estimate of a loss of $1.48. The company had suffered a loss of $1.02 per share in the year-ago quarter.
Revenues of $166.4 million surpassed the consensus estimate by 11% and increased 5% year over year. The top line was positively impacted by volumes and net average charge as the company had a strong end to the 2022 tax season. Lower Emerald Card revenues partially offset the top-line growth.
Other Quarterly Numbers
Adjusted loss per share from continuing operations widened from $1.02 to $1.37 on a year-over-year basis, mainly due to the higher net loss from lower income tax benefits and fewer shares outstanding.
H&R Block exited the quarter with a cash and cash equivalents balance of $264.5 million compared with the $322.8 million at the end of the prior quarter. Long-term debt and line of credit borrowings were $2.1 billion compared with $1.5 billion in the previous quarter figure.
H&R Block used $458.8 million of cash in operating activities while capex was $25.3 million. HRB paid out dividends of $46 million in the quarter.
2023 Outlook
H&R Block expects revenues in the range of $3.535-$3.585 billion.
Adjusted EPS is expected to be between $3.7 and $3.95. EBITDA is expected between $915 million and $950 million. The effective tax rate is expected to be around 22%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, H&R Block has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H&R Block has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
H&R Block (HRB) Down 5.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for H&R Block (HRB - Free Report) . Shares have lost about 5.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is H&R Block due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
H&R Block’s Q2 Earnings Loss
H&R Block, Inc. (HRB - Free Report) reported a second-quarter fiscal 2023 adjusted loss per share of $1.37, beating the Zacks Consensus Estimate of a loss of $1.48. The company had suffered a loss of $1.02 per share in the year-ago quarter.
Revenues of $166.4 million surpassed the consensus estimate by 11% and increased 5% year over year. The top line was positively impacted by volumes and net average charge as the company had a strong end to the 2022 tax season. Lower Emerald Card revenues partially offset the top-line growth.
Other Quarterly Numbers
Adjusted loss per share from continuing operations widened from $1.02 to $1.37 on a year-over-year basis, mainly due to the higher net loss from lower income tax benefits and fewer shares outstanding.
H&R Block exited the quarter with a cash and cash equivalents balance of $264.5 million compared with the $322.8 million at the end of the prior quarter. Long-term debt and line of credit borrowings were $2.1 billion compared with $1.5 billion in the previous quarter figure.
H&R Block used $458.8 million of cash in operating activities while capex was $25.3 million. HRB paid out dividends of $46 million in the quarter.
2023 Outlook
H&R Block expects revenues in the range of $3.535-$3.585 billion.
Adjusted EPS is expected to be between $3.7 and $3.95. EBITDA is expected between $915 million and $950 million. The effective tax rate is expected to be around 22%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, H&R Block has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, H&R Block has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.