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H&R Block shares rise after exceeding profit forecasts and increasing dividends
Key findings
- H&R Block shares jumped Friday, a day after the tax preparation firm reported better-than-forecast fourth-quarter results.
- The company also announced a quarterly dividend payout of 37.5 cents per share, an increase of 17 percent, and a new $1.5 billion share buyback program.
- H&R Block also issued guidance expecting higher revenue and adjusted earnings per share for fiscal 2025.
H&R Block (HRB) shares are jumping on Friday, a day after the tax preparation company reported better-than-forecast fourth-quarter results.
H&R Block said revenue rose to $1.06 billion in the three months ended June 30 from $1.03 billion a year earlier, while net income fell to $257.8 million from $302.3 million. Both exceeded analyst consensus estimates compiled by Visible Alpha.
After reporting adjusted earnings per share (EPS) of $4.14 on revenue of $3.61 billion in fiscal year 2024, the company expects adjusted earnings per share (EPS) of $5.15 to $5.35 on revenue of $3.69 to $3.75 billion for fiscal year 2025.
The company also announced a quarterly dividend payout of 37.5 cents per share, an increase of 17 percent, and a new $1.5 billion share buyback program.
CEO praises “customer success” and sees increasing momentum
“We continue to make progress, gain new insights and convert this customer success into value for shareholders. We are well positioned to build on this momentum in fiscal 2025 and beyond,” said Chief Executive Officer (CEO) Jeff Jones.
H&R Block shares rose 18% to $67.86 shortly after the market close on Friday. They are up nearly 40% this year.
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