H & R Block Q1 revenue beats estimates driven by growth in international services

Overview

• U.S. tax preparer's fiscal Q1 revenue rose 10%, beating analyst expectations

• Adjusted EPS loss widened to $1.40

• Company repurchased $100 mln of shares in Q1 as part of capital return strategy

Outlook

• H&R Block reaffirms fiscal 2027 revenue guidance of $4.11 bln to $4.16 bln

• Company maintains fiscal 2027 adjusted EBITDA outlook of $1.11 bln to $1.14 bln

• H&R Block expects fiscal 2027 adjusted diluted EPS of $6.04 to $6.24

Result Drivers

• INTERNATIONAL SERVICES - Co said revenue growth was primarily driven by growth in international services

• TAX PROTECTION AND IDENTITY SERVICES - Co cited higher tax protection and identity services as contributing to revenue growth

• SMALL BUSINESS SERVICES - Co said an increase in small business services supported revenue growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy."

• Wall Street's median 12-month price target for H & R Block Inc is $59.00, about 12% above its November 6 closing price of $52.69

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)