H&R Block Stock Inches Up After Mixed Earnings Report

H&R Block in New York City (Courtesy H&R Block)

Shares of H&R Block rose slightly after the company reported mixed earnings.

While revenue of $1.111 billion slightly beat analyst expectations of $1.075 billion, earnings came in light at $2.27 a share, versus the expected $2.83.

As a result, full-year revenue slightly beat the company’s own forecast, but full-year earnings per share also fell short. When the company last reported earnings in May, it forecast full-year revenue of $3.69 billion to $3.75 billion and earnings of $5.15 to $5.35 a share. Those numbers came in at $3.761 billion and $4.66, respectively.

For the fiscal year ending next June, the company expects revenue of $3.875 billion to $3.895 billion and earnings of $4.85 to $5.00 a share.

After an initial dip of 2.5% in after-hours trading, the company’s shares rose 1% to $52.05. They had fallen 5.5% in regular trading Tuesday to $51.44 before releasing its results.

The company blamed its EPS miss on the delay in a one-time tax benefit that it says would have increased that figure by 50 cents a share. “Due to external factors beyond the Company’s control, the completion of these matters was delayed beyond fiscal 2025,” the earnings release said.

It also announced a 12% increase in its quarterly dividend to 42 cents a share. It has been paying out quarterly dividends since 1962 and has announced increases for the past eight years.

Investors appeared skeptical of a management change at H&R Block, which the company announced the day before it reported earnings.

Shares fell in regular trading Tuesday after longtime CEO Jeff Jones announced his retirement effective at the end of this year. Curtis Campbell, now the company’s president of Global Consumer Tax and Chief Product Officer, will succeed him.

The slide was particularly notable for a company whose stock has been relatively stable recently. Even with that slump, the stock is down just 2.74% so far this year and 8.87% for the past 52 weeks.

Write to Anita Hamilton at anita.hamilton@barrons.com