Stock Story -
Tax preparation company H&R Block (NYSE:HRB) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
H&R Block beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.06 billion, up 3% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts’ expectations but a miss of analysts’ operating margin 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 grow 2.1% year on year to $187.7 million, in line with the 2.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.21 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 Q3 results, giving us a hint as to what we can expect. Carriage Services delivered year-on-year revenue growth of 11.3%, beating analysts’ expectations by 8.1%, and Frontdoor (NASDAQ:FTDR) reported revenues up 3.1%, in line with consensus estimates. Carriage Services traded up 14.6% following the results while Frontdoor was also up 10.8%.
Read the full analysis of Carriage Services’s and Frontdoor’s results on StockStory.
There has been positive sentiment among investors in the specialized consumer services segment, with share prices up 3.3% on average over the last month. H&R Block is down 1.4% during the same time and is heading into earnings with an average analyst price target of $60.67 (compared to the current share price of $60.99).