Post-Earnings Coverage H & R Block In the Limelight

H&R Block Exceeds Market Expectation; Raises Dividend

LONDON, UK / ACCESSWIRE / June 10, 2016 / ActiveWallSt.com announces its post-earnings coverage on H & R Block Inc. (NYSE: HRB). The world’s largest consumer tax provider announced its Fiscal 2016 financial results on Thursday, June 9, 2016. H&R Block earnings and revenue declined on y-o-y basis; however its revenue exceeded market expectations. The company also announced a 10% increase in its dividend pay-out, sending shares higher. Register with us now for your free membership and see our complete coverage on this equity at:

http://www.activewallst.com/register/

Today, ActiveWallSt.com is promoting its earnings coverage on HRB. Get all of our free coverage by signing up to http://www.activewallst.com/register/.

Earnings Breakdown

For the period ending on April 30, 2016, H&R Block reported earnings of $700.7 million, or $3.13 per share, as compared to $738.8 million, or $2.66 per share, in the year ago period. For FY16, adjusted earnings came in at $3.16 per share, as compared to adjusted earnings of $2.68 posted in FY15, marginally missing the analysts’ consensus estimate of $3.17.

H&R Block’s revenue dropped by 0.2% to $2.3 billion, primarily due to a 4.1% decline in its worldwide client volume. Revenue was also impacted by the divestiture of H&R Block Bank and currency headwind. H&R Block suffered a 5.8% decline in assisted returns on y-o-y basis and a dip of 2.6% in returns from H&R Block Tax Software, resulting in a dip of 4.5% in total U.S returns. The disappointing results came in the crucial tax season which is generally the strongest for the company. On April 26, 2016, H&R Block said the number of tax returns it handled this year fell 5.8%.

Competition Takes a Toll

H&R Block’s earnings results were termed as “unacceptable” by Chief Executive Bill Cobb. The Kansas-based tax calculation services provider, vowed to do better after being beaten by Turbo Tax owner Intuit Inc. (NASDAQ: INTU) in the critical electronic market. Mr. Cobb has promised significant changes ahead of next tax season, with the company in April 2016, announcing 250 jobs cuts and cost reduction initiatives in information technology, infrastructure, and support as part of the strategy to develop innovative solutions to attract new clients. H&R Block has also been actively promoting its ability to help taxpayers with the Affordable Care Act and its impact on their tax returns, which the company believes can be beneficial in the long run.

Dividend

Additionally, the company’s board approved a $0.2 hike in the quarterly dividend to $0.22 per share, payable on July 1, 2016 to shareholders on record as of June 20, 2016. This takes the company’s dividend yield to 4.1%.

Technicals

H&R Block shares were up 2.60% in after-market trading session post the earning release. Since the beginning of the year, shares of the company have plunged 35.33% as compared to a rise of 3.50% in S&P 500. However, the company’s shares are up 7.65% in the past one month.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly at:

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
Email: info@activewallst.com
Phone number: 1-858-257-3144

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 440984