H & R Block Inc : Earnings Review and Free Research Report: H&R Block's Quarterly EPS Surged 17%; Raised Dividend By 9%
Research Desk Line-up: Liberty Tax Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on H&R Block, Inc. (NYSE: HRB), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HRB, following the Company's announcement of its fourth quarter and fiscal 2017 financial results on June 13, 2017. The tax preparer surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.
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For the three months ended April 30, 2017, H&R Block's revenue totaled $2.33 billion compared to revenue of $2.30 billion in Q4 FY16. The Company's revenue numbers surpassed analysts' consensus of $2.32 billion.
For FY17, H&R Block's revenues were almost flat on a y-o-y basis to $3.03 billion as improvement in the Company's assisted net average charge was partially offset by a decline in return volume. DIY tax preparation revenue declined as H&R Block More ZeroSM promotion resulted in a lower net average charge which was partially offset by increased return volume.
During Q4 FY17, H&R Block's operating expenses came in at $818.81 million compared to $853.13 million in Q4 FY16. For FY17, the Company's operating expenses decreased 3.5% to $1.64 billion, driven by cost reduction measures which led to lower compensation and benefits and marketing costs, along with lower bad debt expense due to more favorable collections on prior year's receivables.
H&R Block's net income came in at $783.35 million, or $3.75 per diluted share, compared to net income of $700.66 million, or $$3.13 per diluted share, in Q4 FY16. Earnings, adjusted to account for discontinued operations and non-recurring costs, totaled $3.76 per share, beating Wall Street's estimates of $3.51 per share.
For FY17, H&R Block's net income from continuing operations increased 10% to $421 million, while diluted earnings per share from continuing operations increased $0.43, or 28%, to $1.96. In the reported year, H&R Block's EBITDA from continuing operations improved 11% to $904 million. The Company's EBITDA margin totaled 29.8% for the reported quarter, an improvement of over 300 basis points from the prior fiscal year.
H&R Block ended the fiscal year with $1.0 billion in unrestricted cash compared to $0.9 billion the prior year.
During fiscal 2017, H&R Block repurchased and retired approximately 14 million shares at an aggregate amount of $317 million, or $22.61 per share under a $3.5 billion share repurchase program approved by the Company's Board of Directors in August 2015 and effective through June 2019. Under this program, H&R Block has repurchased a total of approximately 70.4 million shares of its common stock, or approximately 25% of outstanding shares, since the inception of the program, for an aggregate purchase amount of approximately $2.3 billion.
As of April 30, 2017, H&R Block had 207.2 million shares outstanding.
H&R Block announced that its Board of Directors approved an increase in its quarterly dividend of 9% to $0.24 per share. The dividend is payable on July 03, 2017, to shareholders of record as of June 23, 2017. H&R Block has paid quarterly dividends consecutively since the Company went public in 1962.
On May 16, 2017, H&R Block announced that Bill Cobb, President and Chief Executive Officer, will retire from the Company and the H&R Block's Board of Directors effective July 31, 2017. The Company's Board of Directors has appointed Tom Gerke, currently the General Counsel and Chief Administrative Officer, to be the interim President and CEO beginning August 01, 2017. H&R Block's Board has retained a search firm to assist in the search for a permanent President and CEO.
At the closing bell, on Wednesday, June 28, 2017, H&R Block's stock dropped 1.91%, ending the trading session at $30.74. A total volume of 6.67 million shares have exchanged hands, which was higher than the 3-month average volume of 3.21 million shares. The Company's stock price skyrocketed 34.65% in the last three months, 30.75% in the past six months, and 37.72% in the previous twelve months. Moreover, the stock soared 33.71% since the start of the year. The stock is trading at a PE ratio of 15.40 and has a dividend yield of 3.12%. The stock currently has a market cap of $6.37 billion.
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