H&R Block shares gain 7% on strong guidance, Q4 results

NEW YORK - H&R Block Inc. (NYSE:HRB ) shares jumped 7.6% in after-hours trading Thursday after the tax preparation company reported better-than-expected fourth quarter results and issued upbeat guidance for fiscal 2025.

The Kansas City-based company posted adjusted earnings per share of $1.89 for the quarter ended June 30, surpassing analyst estimates of $1.74. Revenue rose 3% YoY to $1.06 billion, also topping expectations of $1.03 billion.

For fiscal 2025, H&R Block forecast earnings per share of $5.15 to $5.35, well above the consensus estimate of $4.30. The company expects revenue between $3.69 billion and $3.75 billion, higher than analysts' projections of $3.575 billion.

"In fiscal 2024 we made strides across our different products and services that provide value to our clients and help enable their financial confidence," said CEO Jeff Jones in a statement.

The strong outlook reflects management's confidence in the company's strategy and future prospects. H&R Block also announced a 17% increase in its quarterly dividend to $0.375 per share and a new $1.5 billion share repurchase authorization.

For fiscal 2024, H&R Block reported full-year revenue of $3.6 billion, up 4% YoY, and earnings per share from continuing operations of $4.14, a 16% increase from the prior year.

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Source: Investing.com