Barrington Research Lowers Earnings Estimates for H&R Block

Key Points

• Barrington Research decreased its FY2026 earnings estimate for H&R Block to $4.94 per share from $5.15, while maintaining an "Outperform" rating and a target price of $62.00.
• H&R Block recently reported quarterly earnings of $2.27 EPS, which was below analysts' expectations, despite revenue of $1.11 billion exceeding forecasts.
• The company announced an increase in its quarterly dividend to $0.42, with a yield of 3.4% for shareholders of record on September 4th.

H&R Block, Inc. (NYSE:HRB - Free Report) - Stock analysts at Barrington Research lowered their FY2026 earnings estimates for shares of H&R Block in a report issued on Wednesday, August 13th. Barrington Research analyst A. Paris now anticipates that the company will post earnings of $4.94 per share for the year, down from their previous forecast of $5.15. Barrington Research currently has a "Outperform" rating and a $62.00 target price on the stock. The consensus estimate for H&R Block's current full-year earnings is $5.25 per share. Barrington Research also issued estimates for H&R Block's FY2027 earnings at $5.35 EPS.

A number of other brokerages have also commented on HRB. Wall Street Zen upgraded shares of H&R Block from a "hold" rating to a "buy" rating in a research note on Friday, May 9th. Zacks Research downgraded shares of H&R Block from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. The Goldman Sachs Group cut their price objective on shares of H&R Block from $54.00 to $48.00 and set a "sell" rating on the stock in a report on Wednesday, August 13th. Finally, Northcoast Research downgraded shares of H&R Block from a "buy" rating to a "neutral" rating in a report on Friday, May 2nd. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $55.00.

H&R Block Stock Up 0.5%

HRB stock traded up $0.2330 during midday trading on Friday, reaching $51.4430. 1,981,449 shares of the company's stock traded hands, compared to its average volume of 1,498,149. The company has a market cap of $6.89 billion, a price-to-earnings ratio of 11.51, a P/E/G ratio of 0.82 and a beta of 0.24. The firm's fifty day moving average price is $54.75 and its 200-day moving average price is $55.63. The company has a quick ratio of 0.78, a current ratio of 0.90 and a debt-to-equity ratio of 12.86. H&R Block has a 52 week low of $47.00 and a 52 week high of $66.85.

H&R Block (NYSE:HRB - Get Free Report) last announced its quarterly earnings results on Tuesday, August 12th. The company reported $2.27 EPS for the quarter, missing analysts' consensus estimates of $2.81 by ($0.54). The business had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.07 billion. H&R Block had a net margin of 16.11% and a negative return on equity of 191.38%. The business's revenue for the quarter was up 4.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.89 EPS. H&R Block has set its FY 2026 guidance at 4.850-5.000 EPS.

Institutional Investors Weigh In On H&R Block

Institutional investors have recently added to or reduced their stakes in the business. SVB Wealth LLC purchased a new stake in H&R Block during the first quarter valued at about $26,000. Operose Advisors LLC purchased a new stake in H&R Block during the second quarter valued at about $27,000. Brooklyn Investment Group increased its position in shares of H&R Block by 72.1% during the first quarter. Brooklyn Investment Group now owns 513 shares of the company's stock valued at $28,000 after buying an additional 215 shares during the period. Signaturefd LLC increased its position in shares of H&R Block by 40.0% in the second quarter. Signaturefd LLC now owns 651 shares of the company's stock worth $36,000 after purchasing an additional 186 shares during the last quarter. Finally, Bogart Wealth LLC increased its position in shares of H&R Block by 42.9% in the first quarter. Bogart Wealth LLC now owns 666 shares of the company's stock worth $37,000 after purchasing an additional 200 shares during the last quarter. 90.14% of the stock is owned by hedge funds and other institutional investors.

H&R Block Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 6th. Shareholders of record on Thursday, September 4th will be issued a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 3.3%. This is a boost from H&R Block's previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Thursday, September 4th. H&R Block's payout ratio is currently 33.56%.

H&R Block Company Profile

H&R Block, Inc engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.