Tax preparation company H&R Block (NYSE: HRB) will be reporting results this Tuesday after the bell. Here’s what investors should know.
H&R Block beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $2.28 billion, up 4.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ Tax Preparation revenue 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 $1.09 billion, in line with the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.83 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.4% on average.
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. Matthews’s revenues decreased 18.3% year on year, beating analysts’ expectations by 8.5%, and Frontdoor reported revenues up 13.8%, topping estimates by 2.3%. Matthews traded up 4.2% following the results while Frontdoor was down 2.6%.
Read our full analysis of Matthews’s results here and Frontdoor’s results here.
Investors in the specialized consumer services segment have had fairly steady hands going into earnings, with share prices down 1.8% on average over the last month. H&R Block is down 1.1% during the same time and is heading into earnings with an average analyst price target of $62 (compared to the current share price of $55.35).
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