H&R Block | $HRB Stock | Q4 Earnings Preview


H&R Block, Inc. (NYSE: HRB)



HRB Chart
HRB is set to report its 4th quarter 2016 earnings results after the market close today, June 9, 2016. The street is expecting earnings of $3.09 a share on revenues of $2.29B. At the last earnings report, HRB opened lower by over 10% and continued its decline throughout the trading day. Since that took place in early March, HRB has been on the decline and now sits just off its yearly lows.


Analyst Expectations

Analysts at Barrington Research had the following preview for HRB into tonight’s report.

Q4/16 estimates: Our recently – reduced estimates call for revenue of $2.285 billion (- 0.7% YOY), compared to $2.301 billion last year, and diluted EPS of $3.03 (+12.5% YOY), compared to $2.69 in Q4/15. The FactSet consensus calls for revenue of $2.292 billion ( – 0.4% YOY) and diluted EPS of $3.21 (+19.3%) a range of 10 estimates of $2.79 – 3.41. – FY/16 estimates: For the full year (April 30), we expect total revenue of $3.026 billion (- 1.7% YOY) and diluted EPS of $1.69, down 3.3% from $1.75 in fiscal 2015. The FactSet consensus estimate calls for revenue and diluted EPS of $3.031 billion ( – 1.6% YOY) and $1.68 ( – 4.0% YOY), respectively. What to listen for on the conference call: Management said it plans to share additional information regarding its plans for FY/17 on its earnings conference call, including a detailed assessment of this season, FY/16 results and a FY/17 outlook, further details on organizational changes, an update regarding cost reductions, and information regarding the company’s capital structure, including its dividend policy. It has already announced plans to streamline operations to better align its resources and focus to achieve long term growth, including the realignment of its field operations and a significant cost reduction effort, which is intended to result in a more efficient/accountable organization. Going forward, the company will invest more selectively in growth opportunities, while rationalizing the cost structure and focusing on improving margins and free cash flow.


About H&R Block, Inc.

H&R Block, Inc. (H&R Block), incorporated on July 27, 1955, is a holding company. The Company, through its subsidiaries, provides tax preparation and other services. The Company provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions and other services and products related to income tax return preparation to the general public primarily in the United States, and its territories, Canada and Australia. The Company offers a range of online tax services, from tax advice to complete professional and DIY tax return preparation and electronic filing, through its Website at www.hrblock.com. Services available at this Website allow clients to prepare their federal and state income tax returns using online tax program, access tax tips, advice and tax-related news, and use calculators for tax planning. – Reuters