Tax preparation firm H&R Block Q4 revenue rises slightly

Overview

• H&R Block Q4 revenue rises to $1.11 bln from $1.06 bln year ago

• Adjusted EPS from continuing operations at $2.27

• Co returned $600 mln to shareholders, increases quarterly dividend by 12%

Outlook

• H&R Block expects FY 2026 revenue of $3.875 bln to $3.895 bln

• Company projects FY 2026 EBITDA between $1.015 bln and $1.035 bln

• H&R Block anticipates FY 2026 adjusted EPS of $4.85 to $5.00

• Company expects FY 2026 effective tax rate of approximately 25%

Result Drivers

• DIVIDEND RISE - Board of directors increased the quarterly dividend by 12%, representing eight consecutive annual increases

• STOCK REPURCHASE - Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy."

• Wall Street's median 12-month price target for H & R Block Inc is $62.00, about 12.2% above its August 11 closing price of $54.45

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX3cPHGg