Stock Story -
Tax preparation company H&R Block (NYSE:HRB) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
H&R Block beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $2.18 billion, up 4.4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ earnings estimates but a miss of analysts’ Wave Financial revenue estimates.
Is H&R Block a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting H&R Block’s revenue to be flat year on year at $1.03 billion, improving from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.74 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Carriage Services delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 7.7%, and ADT reported revenues up 3.1%, in line with consensus estimates. Carriage Services’s stock price was unchanged after the results, while ADT was down 11%.
Read the full analysis of Carriage Services’s and ADT’s results on StockStory.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the specialized consumer services stocks have fared somewhat better, they have not been spared, with share prices down 7.4% on average over the last month. H&R Block is up 1.1% during the same time and is heading into earnings with an average analyst price target of $53 (compared to the current share price of $56.39).
