H&R Block (NYSE:HRB) Reaches New 52-Week High After Earnings Beat

Key Points

• H&R Block exceeded quarterly expectations, reporting adjusted EPS of $2.38 versus the $2.21 consensus and revenue of $1.14 billion versus $1.12 billion. Shares reached a new 52-week high following the earnings release.
• Management forecast fiscal 2027 adjusted EPS of $6.04–$6.24 and revenue of approximately $4.11–$4.16 billion, both above analyst expectations.
• The company raised its quarterly dividend to $0.46 per share, or $1.84 annualized. Despite the stronger outlook, analysts maintain a consensus “Hold” rating with a $43.33 target price, below the stock’s recent trading level.

H&R Block, Inc. (NYSE:HRB - Get Free Report) hit a new 52-week high on Wednesday following a better than expected earnings announcement. The company traded as high as $53.00 and last traded at $53.9660, with a volume of 56613 shares traded. The stock had previously closed at $46.67.

The company reported $2.38 earnings per share for the quarter, topping analysts' consensus estimates of $2.21 by $0.17. The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.12 billion. H&R Block had a negative return on equity of 211.62% and a net margin of 18.90%.The company's revenue was up 255.5% on a year-over-year basis. During the same quarter last year, the firm earned $2.27 earnings per share. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS.

H&R Block Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 6th. Shareholders of record on Thursday, September 3rd will be paid a $0.46 dividend. This is a positive change from H&R Block's previous quarterly dividend of $0.42. The ex-dividend date is Thursday, September 3rd. This represents a $1.84 annualized dividend and a yield of 3.2%. H&R Block's dividend payout ratio is presently 29.89%.

H&R Block News Roundup

Here are the key news stories impacting H&R Block this week:

• Positive Sentiment: H&R Block reported fiscal fourth-quarter adjusted EPS of $2.38, exceeding the $2.21 analyst consensus, while revenue reached $1.14 billion versus expectations of $1.12 billion. EPS also increased from $2.27 in the year-earlier period. H&R Block Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management projected fiscal 2027 adjusted EPS of $6.04-$6.24, above the roughly $5.82 consensus, and revenue of approximately $4.11-$4.16 billion, also ahead of Wall Street expectations. The company plans to expand its consultative service model, supporting expectations for continued growth. H&R Block Fiscal 2027 Outlook
• Positive Sentiment: The board approved a 9.5%-to-10% increase in the quarterly dividend to $0.46 per share, or $1.84 annualized, implying a yield near 3.9%. The increase marks the company’s ninth consecutive annual dividend raise and reinforces its shareholder-return appeal. H&R Block Raises Quarterly Dividend
• Positive Sentiment: Fiscal 2026 results included 5% revenue growth, operating cash flow growth of 23%, and $714 million returned through dividends and share repurchases, adding to the bullish reaction to the earnings release. H&R Block Fiscal 2026 Results
• Neutral Sentiment: Despite the strong headline results, H&R Block reported a negative return on equity, and its tax-focused business remains seasonal. Investors will likely monitor client retention, digital-tax growth, cash conversion, and execution of the expanded consultative model.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Stephens began coverage on shares of H&R Block in a research report on Tuesday, July 28th. They set an "equal weight" rating and a $47.00 target price on the stock. Barrington Research reiterated an "outperform" rating and issued a $50.00 price target on shares of H&R Block in a research report on Monday, April 27th. Weiss Ratings upgraded H&R Block from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 2nd. Zacks Research downgraded H&R Block from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, The Goldman Sachs Group restated a "sell" rating and set a $33.00 price objective on shares of H&R Block in a research note on Wednesday. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $43.33.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Amundi lifted its holdings in H&R Block by 2,344.4% during the 1st quarter. Amundi now owns 229,207 shares of the company's stock worth $7,275,000 after buying an additional 219,830 shares during the period. UBS Group AG increased its stake in shares of H&R Block by 19.2% in the fourth quarter. UBS Group AG now owns 934,917 shares of the company's stock valued at $40,744,000 after buying an additional 150,719 shares during the period. Ceera Investments LLC raised its position in shares of H&R Block by 299.1% during the first quarter. Ceera Investments LLC now owns 42,228 shares of the company's stock worth $1,340,000 after acquiring an additional 31,648 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of H&R Block during the first quarter worth about $1,523,000. Finally, Fifth Third Bancorp lifted its stake in shares of H&R Block by 543.1% in the first quarter. Fifth Third Bancorp now owns 67,038 shares of the company's stock worth $2,128,000 after acquiring an additional 56,613 shares during the period. 90.14% of the stock is owned by institutional investors.

H&R Block Price Performance

The company has a fifty day moving average of $40.00 and a 200 day moving average of $35.72. The firm has a market capitalization of $7.36 billion, a P/E ratio of 9.81, a PEG ratio of 0.65 and a beta of 0.34.

H&R Block Company Profile

H&R Block NYSE: HRB is a leading provider of tax preparation services and software solutions, serving individual and small-business clients through a combination of retail offices, online platforms and mobile applications. The company offers assisted tax preparation at its network of retail offices, where clients work with trained tax professionals, as well as do-it-yourself (DIY) software and online filing services designed to guide users through the complexities of federal and state tax returns.

Founded in 1955 by brothers Henry W.

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