H&R Block Slumps 10% As Revenue Disappoints

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H&R Block Slumps 10% As Revenue Disappoints
Credit: © Reuters.

By Dhirendra Tripathi

Investing.com – H&R Block (NYSE: HRB ) lost a tenth of its value in Wednesday’s trading after its fourth quarter revenue disappointed traders even as earnings beat expectations.

The tax preparation company Tuesday reported earnings per share of $5.16 on $2.33 billion in revenue. According to an Investing.com poll, EPS was seen at $5.06 on revenue of $2.35 billion.

The company has shifted to a fiscal year ending June 30 from April 30 for better alignment of complete tax seasons in comparable fiscal periods and other related benefits.

H&R also announced a 4% increase in its quarterly dividend to 27 cents per share. This is the fifth increase in six years, resulting in a 35% total increase in that time frame.

The company has guided for fiscal 2022 earnings before interest, taxes, depreciation and amortization to come between $765 million and $815 million on revenue of $3.25 billion to $3.35 billion.

It said it remains confident of achieving sustainable annual revenue growth of 3% to 6% with EBITDA and EPS growing at a rate faster than revenue’s.

 

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