Yahoo Finanza H&R Block Inc (HRB) Nears High End of FY24 Outlook, Surpassing Analyst Revenue Estimates
Revenue: $2.2 billion, up by 4% year-over-year, surpassing estimates of $2.137 billion.
Net Income: $691.6 million, up by 7% from the previous year, exceeding estimates of $655.68 million.
Earnings Per Share (EPS): From continuing operations increased to $4.87, up from $4.14 year-over-year, surpassing the quarterly estimate of $4.62.
Adjusted EPS: Increased from $4.20 to $4.94, indicating a robust performance and surpassing the quarterly estimate of $4.62.
Dividends: Quarterly cash dividend announced at $0.32 per share, maintaining a consistent return to shareholders.
Share Repurchases: $350 million of shares repurchased in the first two quarters, with an additional $350 million authorized through fiscal year 2025.
Outlook: Company expects to be near the high end of the previously provided revenue range of $3.530 to $3.585 billion for fiscal year 2024.
H&R Block Inc (NYSE:HRB) released its fiscal 2024 third quarter results on May 9, 2024, showcasing a robust performance with significant growth in revenue and earnings per share. The detailed financial outcomes can be accessed through the company's recent 8-K filing.
H&R Block, a global leader in tax preparation services, reported a 4% increase in revenue to $2.2 billion for the quarter, surpassing the analyst's estimate of $2.137 billion. This growth was primarily driven by higher net average charges and company-owned volumes in their Assisted category, coupled with an increase in online paid returns.
Financial Performance Highlights
The company's net income saw a 7% increase, reaching $691.6 million, while earnings per share from continuing operations grew by 18%, from $4.14 to $4.87. This performance indicates a strong operational efficiency and effective cost management, aligning with the company's strategic initiatives to enhance digital services and client engagement.
Operating expenses totaled $1.3 billion, a slight increase due to higher field wages and legal fees, offset by reduced marketing and advertising expenses. The pretax income surged by $51.9 million to $907.4 million, reflecting the company's ability to leverage its revenue growth into substantial profit gains.
Strategic Developments and Capital Allocation
H&R Block's strategic focus on expanding its digital capabilities is evident from the 6% growth in DIY paid online clients. The company also highlighted advancements in its financial products like Spruce and Wave, aiming to enhance client experiences and broaden service offerings.
In terms of capital allocation, H&R Block remains committed to delivering shareholder value through dividends and share repurchases. The company announced a quarterly cash dividend of $0.32 per share and reported $350 million in share repurchases in the first two quarters. An additional $350 million remains available under the share repurchase authorization through fiscal year 2025.
Outlook for Fiscal Year 2024
Encouraged by the strong performance in the third quarter, H&R Block now anticipates its full-year results to be near the high end of the previously provided outlook. The company expects revenue to range between $3.530 to $3.585 billion and adjusted diluted EPS to be between $4.10 to $4.30.
The effective tax rate is projected to be between 21-22%, a reduction from the previous estimate of 23%, potentially boosting the net income further.
Conclusion
H&R Block's third-quarter results not only demonstrate a solid financial standing but also underscore its resilience and adaptability in a dynamic market environment. The company's strategic emphasis on digital transformation and client-centric services is likely to sustain its growth trajectory, making it a noteworthy consideration for investors focused on stability and innovation in the personal services sector.
For a more detailed financial analysis and future updates, investors and interested parties are encouraged to follow H&R Block's filings and announcements.
Explore the complete 8-K earnings release (here) from H&R Block Inc for further details.
This article first appeared on GuruFocus.
