Categories AlphaGraphs, Earnings, Finance
H&R Block beats Q4 estimates and announces dividend increase
H&R Block Inc. (NYSE: HRB) topped market expectations on revenue and earnings for the fourth quarter of 2019. After gaining briefly in premarket hours on Tuesday, the stock dropped by 1.6%.
Total revenues dropped to $2.33 billion from $2.39 billion in the same period last year, but beat estimates of $2.32 billion.
Net income declined to $877 million, or $4.29 per share, from $1.14 billion, or $5.42 per share, in the prior-year period, but topped forecasts of $4.13 per share.
For FY19, revenues fell 2.1% to $3.1 billion due to targeted price decreases in the US Assisted tax business. Net income from continuing operations decreased 29% to $445 million while EPS dropped 27.9% to $2.15.
In fiscal 2019, US tax returns prepared by or through H&R Block rose 1.5% to 20.3 million. Overall client growth was driven by DIY online growth of 9.3%. Assisted returns decreased 1.7%.
The Board of Directors approved a 4% increase in its quarterly dividend to $0.26 per share. The dividend is payable on July 1 to shareholders of record as of June 21, 2019. The company also extended its share repurchase authorization by three years. The authorization has around $1 billion remaining and will expire in June 2022.
In a separate release, the company announced that it has agreed to acquire financial solutions platform Wave for $405 million. The deal is expected to close in the next few months subject to regulatory approval. Based on the expected timing of closure, H&R Block estimates the transaction will generate revenues of $40-45 million for fiscal 2020.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion