H&R Block Up 10.94% To $43.70 After Earnings

Wednesday, August 10, 2022 - H&R Block (HRB) reported upside earnings and revenues today.

H&R Block's earnings came in at an EPS of $1.43 per share. The firm's earnings are down 72% since reporting $5.16 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

H&R Block reported Q4 2022 revenue of $1.1 billion. The $1.1 billion (0%) negative revenue surprise led to negative 55% growth year-over-year as the firm reported revenue of $2.3 billion in its year-ago quarter. The lower earnings growth compared to revenue points to H&R Block not being able to improve its profit margin.

The stock is up 10.94% to $43.70 after the report.

H&R Block's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned H&R Block a Bearish Sentiment Rank from InvestorsObserver.

H&R Block has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 97, putting H&R Block in the top 25% of stocks. The firm was recently trading at a 52-week high of $40.6 on August 8, 2022 and set a 52-week low on January 24, 2022 at $21.08.

H&R Block Inc provides income tax return preparation services, digital do-it-yourself tax solutions, and other services related to income tax preparation to the general public primarily in the United States, Canada, and Australia. The company mainly prepares tax returns for customers within the United States through its company-owned offices, franchise locations, and online tax software. The vast majority of H&R Block's offices are located in the U.S. The company derives most of its total revenue from the U.S. assisted tax preparation fees. Revenue from franchise and product royalties and digital do-it-yourself tax solutions is also relatively significant.