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H&R Block's Q4 Earnings Miss Estimates, Improve Year Over Year


H&R Block, Inc. HRB reported mixed results in the fourth quarter of fiscal 2025, with earnings missing the Zacks Consensus Estimate and revenues beating the same.

HRB reported adjusted earnings (adjusting 7 cents from non-recurring items) of $2.27 per share, which lagged the Zacks Consensus Estimate by 19.2% but gained 20.1% from the year-ago reported figure. However, total revenues of $1.11 billion beat the Zacks Consensus Estimate by 3.7% and increased 4.6% year over year.

H&R Block, Inc. Price, Consensus and EPS Surprise

H&R Block, Inc. Price, Consensus and EPS Surprise

H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote

H&R Block shares have declined 9.5% over the past year, outperforming the 12.8% fall of the industry it belongs to.

HRB’s Quarterly Numbers

Revenues from U.S. tax preparation and related services were $975.5 million, up 5% year over year. Revenues from Financial services totaled $16.1 million, marking a year-over-year decline of 14.6%. International revenues of $89.9 million increased 1.3%. Wave revenues registered a jump of 14.4% to $29.54 million.

H&R Block exited the quarter with cash and cash equivalents of $210.28 million and $983.28 million at the end of fiscal 2025. Long-term debt was $1.14 billion compared with $1.49 billion in the June-end quarter of 2024. The company used $680.89 million of cash in operating activities, while capex was $82.03 million.

HRB’s FY25 Outlook

For fiscal 2026, H&R Block expects revenues in the band of $3.875-$3.895 billion. The Zacks Consensus Estimate for the same is pegged at $3.72 billion.

The company expects adjusted earnings per share (EPS) in the range of $4.85-$5.00. The Zacks Consensus Estimate for earnings stands at $5.22. HRB expects EBITDA between $1.015 million and $1.035 billion. The effective tax rate is expected to be 25%.

H&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FI reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.

FI’s adjusted EPS of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion lagged the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.

The Interpublic Group of Companies, Inc. IPG reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.

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Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report
 
H&R Block, Inc. (HRB): Free Stock Analysis Report
 
Fiserv, Inc. (FI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Source Zacks-com

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