Insights

Why Shares of H&R Block Popped Today

What happened
Shares of H&R Block (NYSE: HRB) had jumped more than 17% as of 1:42 p.m. ET Wednesday after the tax preparation giant reported strong quarterly results after the bell Tuesday. It also raised guidance for its fiscal 2022, which runs through the end of June.
So what
For its fiscal 2022 third quarter, which ended March 31, H&R Block reported diluted earnings per share of $4.06 on total revenue of $2.06 billion. Both of those numbers beat analysts’ consensus estimates.
Image source: Getty Images.

“I’m very pleased with our overall tax season, led by another year of share gains in Assisted. As a result of our strong financial results, we are raising our fiscal 2022 guidance,” President and CEO Jeff Jones said in a statement. “We grew small business clients, increased adoption of our virtual tools, and launched Spruce, our new mobile banking platform.”
For the fiscal year, H&R Block now expects to generate revenue of between $3.38 billion and $3.43 billion, and report earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $850 million and $875 million.
In its fiscal Q3, H&R Block repurchased roughly 10 million shares for $226 million. Thus far in this fiscal year, H&R Block has repurchased 13% of its outstanding shares.
Now what 
H&R Block is currently trading at about 14.5 earnings, but it has traded at higher multiples in the past. Additionally, the company has bought back shares aggressively and raised guidance, so the company looks well-positioned to further reward investors.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Shares of H&R Block (NYSE: HRB) had jumped more than 17% as of 1:42 p.m. ET Wednesday after the tax preparation giant reported strong quarterly results after the bell Tuesday. It also raised guidance for its fiscal 2022, which runs through the end of June.

So what

For its fiscal 2022 third quarter, which ended March 31, H&R Block reported diluted earnings per share of $4.06 on total revenue of $2.06 billion. Both of those numbers beat analysts’ consensus estimates.

Image source: Getty Images.

“I’m very pleased with our overall tax season, led by another year of share gains in Assisted. As a result of our strong financial results, we are raising our fiscal 2022 guidance,” President and CEO Jeff Jones said in a statement. “We grew small business clients, increased adoption of our virtual tools, and launched Spruce, our new mobile banking platform.”

For the fiscal year, H&R Block now expects to generate revenue of between $3.38 billion and $3.43 billion, and report earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $850 million and $875 million.

In its fiscal Q3, H&R Block repurchased roughly 10 million shares for $226 million. Thus far in this fiscal year, H&R Block has repurchased 13% of its outstanding shares.

Now what 

H&R Block is currently trading at about 14.5 earnings, but it has traded at higher multiples in the past. Additionally, the company has bought back shares aggressively and raised guidance, so the company looks well-positioned to further reward investors.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!