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.  

H&R Block reports fourth quarter 2019 earnings results

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

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top