Tax preparation company H&R Block (NYSE:HRB) will be reporting results tomorrow after the bell. Here’s what you need to know.
H&R Block beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $193.8 million, up 5.4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ Tax Preparation revenue estimates but a miss of analysts’ adjusted operating income 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 decline 1.4% year on year to $176.6 million, a reversal from the 7.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.59 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 three times over the last two years.
Looking at H&R Block’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. 1-800-FLOWERS’s revenues decreased 5.7% year on year, missing analysts’ expectations by 3.4%, and Malibu Boats reported a revenue decline of 5.1%, topping estimates by 4.8%. 1-800-FLOWERS traded down 8.9% following the results while Malibu Boats’s stock price was unchanged.
Read our full analysis of 1-800-FLOWERS’s results here and Malibu Boats’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. H&R Block is up 4.7% during the same time and is heading into earnings with an average analyst price target of $62.67 (compared to the current share price of $55.59).
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