H&R Block, Inc. (NYSE:HRB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.08%.
H&R Block, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 24.51% to $2.54 in the quarter versus EPS of $2.04 in the year-earlier quarter.
Revenue: Rose 9.96% to $2.2 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: H&R Block, Inc. reported adjusted EPS income of $2.54 per share. By that measure, the company missed the mean analyst estimate of $2.61. It missed the average revenue estimate of $2.28 billion.
Quoting Management: “Considering the challenges the industry faced this tax season, we’re pleased to have executed well and delivered improved profits,” said Bill Cobb, H&R Block’s president and chief executive officer. “While there is opportunity for improvement, we remain committed to our long-term strategy of balancing client acquisition with earnings growth. Consistent with this strategy, we made a number of decisions this year to optimize our promotional offerings and distribution channels in both the assisted and digital do-it-yourself categories. Though some of these actions negatively impact total client volume, we improved overall profitability, while maintaining our overall share of the U.S. market. We also gained share for the third consecutive year in the important digital online category,” added Cobb.
Key Stats (on next page)…