H&R Block, Inc. HRB reported impressive results in the third quarter of fiscal 2025, with earnings and revenues beating the Zacks Consensus Estimate.
HRB reported adjusted earnings (adjusting 7 cents from non-recurring items) of $5.38 per share, which beat the Zacks Consensus Estimate by 5.1% and gained 8.9% from the year-ago reported figure. Total revenues of $2.28 billion marginally beat the Zacks Consensus Estimate by 1.4% and increased 4.2% year over year.
H&R Block, Inc. Price, Consensus and EPS Surprise
H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote
H&R Block shares have rallied 25.3% over the past year, outperforming the 18% decline of the industry it belongs to.
HRB’s Quarterly Numbers
Revenues from U.S. tax preparation and related services were $2.14 million, down 5.2% year over year. Revenues from Financial services were $54.5 million, marking a year-over-year decline of 12.6%. International revenues of $60.4 million decreased 11.5%. Wave revenues registered an increase of 13.3% to $26.7 million.
H&R Block exited the quarter with cash and cash equivalents of $773 million compared with $794.6 million at the end of the year-ago quarter. Long-term debt was $1.14 billion compared with $1.5 billion in the March-end quarter of 2024. The company used $429.3 million of cash in operating activities, while capex was $71.8 million.
HRB’s FY25 Outlook
For fiscal 2025, H&R Block expects revenues in the band of $3.69-$3.75 billion. The midpoint ($3.72 billion) of the guided range is in line with the Zacks Consensus Estimate.
The company expects adjusted earnings per share (EPS) in the range of $5.15-$5.35. The midpoint ($5.25) of the guided range is above the Zacks Consensus Estimate for earnings of $5.23. HRB expects EBITDA between $975 million and $1.02 billion. The effective tax rate is expected to be 13%.
H&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.