Tax preparation company H&R Block (NYSE: HRB) will be announcing earnings results this Monday after market close. Here’s what to expect.
H&R Block beat analysts’ revenue expectations last quarter, reporting revenues of $1.14 billion, up 3% year on year. It was a very strong quarter for the company, with full-year revenue guidance beating analysts’ expectations and full-year EBITDA guidance beating analysts’ expectations.
Is H&R Block a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting H&R Block’s revenue to grow 4.5% year on year, in line with the 5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. H&R Block has a history of exceeding Wall Street’s expectations.
Looking at H&R Block’s peers in the consumer discretionary - specialized consumer services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WeightWatchers’s revenues decreased 11.2% year on year, meeting analysts’ expectations, and Frontdoor reported revenues up 6%, topping estimates by 1.1%. WeightWatchers traded down 6.8% following the results while Frontdoor was up 4.6%.
Read our full analysis of WeightWatchers’s results here and Frontdoor’s results here.
There has been positive sentiment among investors in the consumer discretionary - specialized consumer services segment, with share prices up 4.7% on average over the last month. H&R Block is up 17.2% during the same time and is heading into earnings with an average analyst price target of $51.67 (compared to the current share price of $51.63).
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