H&R Block's stock rallies 10% after tax preparer touts 'client success'

By Claudia Assis

H&R Block also guides for a better fiscal 2025

Shares of H&R Block Inc. jumped about 10% in the extended session Thursday after the tax preparer reported better-than-expected quarterly earnings and guided for another year of revenue growth.

"We continue to make progress, gain new insight, and translate this client success into value for shareholders, and are well positioned to build on this momentum in fiscal 2025 and beyond," Chief Executive Jeff Jones said in a statement.

H&R Block (HRB) earned $258 million, or $1.81 a share, in the quarter ended June 30, compared with $302 million, or $1.96 a share, in the year-ago period.

Adjusted for one-time items, the company earned $1.89 a share. Revenue rose to $1.06 billion, from $1.03 billion a year ago.

Analysts polled by FactSet expected the company to report adjusted EPS of $1.74 on revenue of $1.03 billion.

The company also announced a 17% increase in its quarterly dividend to 37.5 cents a share, and a new share-buyback program of $1.5 billion.

H&R Block guided for fiscal 2025 revenue between $3.69 billion and $3.75 billion, and adjusted EPS between $5.15 and $5.35.

That compares with analysts' expectations for fiscal 2025 revenue of $2.66 billion and adjusted EPS of $4.68.

See also: Kamala Harris, like Donald Trump, wants no taxes on tips. Critics say the idea is 'very silly' - no matter who proposes it.

-Claudia Assis

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08-15-24 2028ET

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