- H&R Block’s 2Q revenue matched estimates at $179.1 million, close to the anticipated $177.5 million.
- US assisted tax preparation revenue exceeded expectations, reaching $48.4 million against an estimate of $45.1 million.
- US royalties revenue fell short, achieving $3.50 million compared to the $4.91 million estimate.
- US DIY tax preparation revenue surpassed estimates, hitting $13.7 million over the forecasted $12.6 million.
- Refund transfers revenue was below the estimate, with actual earnings at $0.64 million versus an expected $0.77 million.
- Peace of Mind extended service plan revenue slightly missed expectations at $16.1 million compared to $16.5 million predicted.
- Tax Identity Shield revenue was below estimate at $4.01 million compared to $4.23 million expected.
- Interest and fee income on Emerald Advance underperformed at $12.3 million, against the $14.4 million projected.
- International revenue outperformed estimates, reaching $31.8 million against $28.2 million expected.
- Wave revenue also exceeded expectations, coming in at $26.6 million versus the $23.1 million estimate.
- The adjusted loss per share from continuing operations was greater than anticipated, at $1.73 compared to an expected $1.67.
- The loss per share from continuing operations stood at $1.79.
- The adjusted EBITDA loss from continuing operations was slightly better than estimates at $261.4 million, with an expected loss of $262.3 million.
- Total operating expenses were slightly higher than forecast, totaling $472.4 million compared to an estimated $469.4 million.
- The company maintains its year forecast, expecting revenue between $3.69 billion and $3.75 billion, aligning with the $3.72 billion estimate.
- Adjusted EPS from continuing operations is still projected between $5.15 and $5.35, close to the estimate of $5.29.
- Analyst ratings include 2 buys, 1 hold, and 1 sell.
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H&R Block Inc on Smartkarma
Analyst coverage of H&R Block Inc on Smartkarma has been diverse, with Value Investors Club offering a bearish outlook on Monday, Sep 30, 2024. The research report highlighted challenges such as losing market share and increased competition for H&R Block. It predicted a potential downside of 25% due to the pricing umbrella collapsing and the impending end of an aggressive buyback program. The report emphasized the upcoming blackout period in the tax season, suggesting it could lead to true price discovery for the company.
The analysis, conducted by Value Investors Club, focused on data-driven short recommendations for H&R Block. The report, published three months ago, indicated concerns about the stock’s recent performance and the likelihood of facing difficulties ahead. While the article cautioned investors about the risks associated with H&R Block, it provided valuable insights into the factors affecting the company’s market position and overall outlook.
A look at H&R Block Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, the long-term outlook for H&R Block Inc appears promising. With a solid Growth score of 4 and a Resilience score of 5, the company shows potential for expansion and has demonstrated strong capability to withstand economic challenges. Additionally, H&R Block Inc‘s Value score of 2 indicates the company is reasonably priced relative to its intrinsic value. While the Dividend and Momentum scores are at 3, showing moderate performance in these areas, the overall outlook for H&R Block Inc seems positive.
H&R Block, Inc. is a company that offers a variety of financial products and services, including tax services, accounting, consulting, and consumer financial software. Serving clients in the United States and beyond, the company has established a reputation for providing reliable and comprehensive financial solutions. With a focus on innovation and customer service, H&R Block Inc is positioned to capitalize on growth opportunities and navigate challenges effectively in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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