H&R Block, the well-known tax preparation company, is scheduled to release its earnings report for the fiscal fourth quarter on Tuesday morning. Here is what you should know about their upcoming announcement.
PROFIT
According to FactSet, analysts expect H&R Block to report a profit of $284 million, or $1.81 per share. This is compared to $222.7 million, or $1.36 per share, in the same quarter of the previous year.
ADJUSTED EARNINGS
Stripping out any one-time items, adjusted earnings are projected to be $1.88 per share, as reported by FactSet.
REVENUE
FactSet also forecasts a dip in quarterly revenue, with expectations of $1.01 billion compared to $1.05 billion in the previous year’s quarter.
WHAT TO WATCH
Here are a few key factors to keep an eye on during H&R Block’s earnings report:
DIY DEMAND
Throughout the fiscal year, H&R Block has focused heavily on marketing to the do-it-yourself category. Analysts at Oppenheimer noted that the company has been gaining market share in this segment. Investors will be interested in updates on how H&R Block is retaining and monetizing new customers in this category.
VOLUME
The overall industry volumes have seen a decline, which has led analysts to predict a slight decrease in revenue for H&R Block this quarter. However, investors will be looking for any signs that demand is not retreating as heavily as expected.
PRICES
H&R Block made the strategic decision to lower prices for its assisted tax-preparation product five years ago, resulting in increased volume. However, they have been raising prices in this segment for the past two years. Investors will be paying attention to how these higher prices impact volumes and market share.
