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Earnings In Focus: June 12 (HRB)

earnings 12jun18

H&R Block Inc. (HRB), a global consumer tax services provider, is set to release its fourth-quarter results after the bell on Tuesday, June 12, 2018. The results are likely to reflect overall tax return volume growth, and improving client trajectory.

Analysts polled by Thomson Reuters expect the company to post earnings of $5.27 per share on revenue of $2.34 billion for the quarter. Analysts' estimate typically exclude certain special items.

Year-Ago Numbers:

* Revenues - $2.33 bln
* Net income from cont. ops. - $786.6 mln
* EPS from cont. ops. - $3.76
* Adj. Income from cont. ops. - $787.0 mln
* Adj. EPS - $3.76

For fiscal year 2018 through April 19, 19.9 million returns were prepared by or through H&R Block in the U.S., a 2.6% increase over fiscal year 2017.

"Our goal this fiscal year was to continue improving our client trajectory, which we achieved, with growth in DIY and improved performance in Assisted," said Jeff Jones, H&R Block's president and chief executive officer.

The improvement in Assisted resulted from the company's strong promotional offerings which included an enhanced Refund Advance no-interest loan, Free Federal 1040EZ offer, and Half Off promotion. Assisted returns decreased 0.6% for fiscal 2018, which compares favorably to the 2.5% decline for fiscal year 2017. The company also reported an increase in net average charge, which was in line with expectations.

DIY online returns rose 10.4%, driving overall DIY growth of 7.9%, reflecting continued product improvements, enhanced partnerships, the H&R Block More Zero promotion, and new self-employed offering. Additionally, net average charge increased due to favorable mix.

Based on these results, H&R Block expects to deliver revenue growth and margins consistent with its prior outlook.

Among other players in the field, CBIZ Inc. (CBZ) reported strong first-quarter revenue growth as well as improved margins, bolstered by strong demand for its core services, a high level of optimism among its clients regarding the general business climate, new consulting and planning engagements related to the Tax Cuts and Jobs Act of 2017, and improved results from a number of project-oriented businesses. The company posted first-quarter income from continuing operations of $35.8 million or $0.64 per share compared to $25.0 million or $0.45 per share for the same period a year ago. Revenue for the quarter rose 10.2% to $266.1 million from $241.5 million last year.

Another peer, Intuit Inc. (INTU) reported third-quarter net income of $1.20 billion or $4.59 per share versus $964 million or $3.70 per share last year. Total net revenue increased to $2.9 billion from $2.5 billion last year. Also, Intuit raised its fiscal 2018 revenue outlook range to $5.915 billion - $5.935 billion, GAAP earnings target to $4.50 - $4.52 per share, and non-GAAP EPS range to $5.51 - $5.53 per share.

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