Tax preparation company H&R Block (NYSE:HRB) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.
H&R Block beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $179.1 million, flat year on year. It was a slower quarter for the company, with a miss of analysts’ EPS and EBITDA estimates.
Is H&R Block a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting H&R Block’s revenue to grow 2.9% year on year to $2.25 billion, slowing from the 4.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. H&R Block has missed Wall Street’s revenue estimates twice over the last two years.
Looking at H&R Block’s peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Frontdoor delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 2.1%, and ADT reported revenues up 6.5%, topping estimates by 2%. Frontdoor traded up 25.3% following the results while ADT’s stock price was unchanged.
Read our full analysis of Frontdoor’s results here and ADT’s results here.
There has been positive sentiment among investors in the specialized consumer services segment, with share prices up 9.2% on average over the last month. H&R Block is up 12.5% during the same time and is heading into earnings with an average analyst price target of $59.50 (compared to the current share price of $61.50).
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