Tax preparation company H&R Block (NYSE: HRB) will be announcing earnings results this Thursday after the bell. Here’s what to expect.
H&R Block beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $1.11 billion, up 4.6% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts’ expectations but a significant miss of analysts’ EPS estimates.
Is H&R Block a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting H&R Block’s revenue to grow 3.5% year on year to $200.6 million, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. H&R Block has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.6% on average.
Looking at H&R Block’s peers in the specialized consumer services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Mister Car Wash delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 0.9%, and Service International reported revenues up 4.4%, topping estimates by 1.5%. Mister Car Wash traded up 8.4% following the results while Service International was also up 4.6%.
Read our full analysis of Mister Car Wash’s results here and Service International’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the specialized consumer services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7% on average over the last month. H&R Block is down 1.6% during the same time and is heading into earnings with an average analyst price target of $55 (compared to the current share price of $50.12).
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