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Market Overview

H&R Block's Earnings: A Preview


H&R Block (NYSE:HRB) releases its next round of earnings this Tuesday, December 08. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts are predicting H&R Block will report a loss of $0.94 per share on revenue of $163.68 million. In the same quarter last year, H&R Block announced EPS of $0.93 on revenue of $160.80 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 1.08%. Sales would be up 1.79% from the year-ago period. H&R Block's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 0.50 2.61 -0.55 -0.92
EPS Actual 0.55 3.01 -0.59 -0.93
Revenue Estimate 617.03 M 1.74 B 485.55 M 161.06 M
Revenue Actual 601.03 M 1.81 B 519.21 M 160.80 M

Stock Performance

Shares of H&R Block were trading at $18.19 as of December 04. Over the last 52-week period, shares are down 23.36%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. H&R Block is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: Earnings