H&R Block (HRB) Q3 Earnings Report Preview: What To Look For

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

H&R Block beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.06 billion, up 3% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts’ expectations but a miss of analysts’ operating margin 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 $187.7 million, in line with the 2.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.21 per share.

Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. Carriage Services delivered year-on-year revenue growth of 11.3%, beating analysts’ expectations by 8.1%, and Frontdoor reported revenues up 3.1%, in line with consensus estimates. Carriage Services traded up 14.6% following the results while Frontdoor was also up 10.8%.

Read our full analysis of Carriage Services’s results here and Frontdoor’s results here.

There has been positive sentiment among investors in the specialized consumer services segment, with share prices up 3.3% on average over the last month. H&R Block is down 1.4% during the same time and is heading into earnings with an average analyst price target of $60.67 (compared to the current share price of $60.99).

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