Earnings To Watch: H&R Block (HRB) Reports Q1 Results Tomorrow

Tax preparation company H&R Block (NYSE:HRB) will be reporting earnings tomorrow after market close. Here's what you need to know.

H&R Block beat analysts' revenue expectations by 5.7% last quarter, reporting revenues of $179.1 million, up 7.6% year on year. It was a strong quarter for the company, with a decent beat of analysts' earnings estimates.

Is H&R Block a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting H&R Block's revenue to grow 2.1% year on year to $2.14 billion, in line with the 1.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.62 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. H&R Block has missed Wall Street's revenue estimates twice over the last two years.

Looking at H&R Block's peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pool's revenues decreased 7.1% year on year, meeting analysts' expectations, and ADT reported a revenue decline of 5.3%, in line with consensus estimates. Pool traded down 1.3% following the results while ADT was up 1%.

Read our full analysis of Pool's results here and ADT's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the specialized consumer services stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. H&R Block is up 5.2% during the same time and is heading into earnings with an average analyst price target of $49.7 (compared to the current share price of $49.31).

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