H&R Block Beats Analyst Estimates on EPS
H&R Block (NYS: HRB) reported earnings on June 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q4), H&R Block met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank.
Margins shrank across the board.
H&R Block chalked up revenue of $2.00 billion. The three analysts polled by S&P Capital IQ foresaw sales of $2.01 billion on the same basis. GAAP reported sales were 1.4% lower than the prior-year quarter's $1.99 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.18. The five earnings estimates compiled by S&P Capital IQ forecast $2.02 per share. GAAP EPS of $1.99 for Q4 were 7.4% lower than the prior-year quarter's $2.15 per share. (The prior-year quarter included $0.05 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.2%, 300 basis points worse than the prior-year quarter. Operating margin was 49.3%, 290 basis points worse than the prior-year quarter. Net margin was 29.9%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.1 million. On the bottom line, the average EPS estimate is -$0.38.
Next year's average estimate for revenue is $3.27 billion. The average EPS estimate is $1.61.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 372 members out of 556 rating the stock outperform, and 184 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give H&R Block a green thumbs-up, and 69 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on H&R Block is outperform, with an average price target of $18.00.
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The article H&R Block Beats Analyst Estimates on EPS originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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