H&R Block (HRB) Q2 Earnings: What To Expect

Tax preparation company H&R Block (NYSE:HRB) will be reporting earnings this Tuesday after market hours. Here’s what to expect.

H&R Block beat analysts’ revenue expectations last quarter, reporting revenues of $2.40 billion, up 5.3% year on year. It was a strong quarter for the company, with full-year EPS guidance topping analysts’ expectations and full-year revenue guidance slightly topping analysts’ expectations.

Is H&R Block a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting H&R Block’s revenue to be flat year on year, slowing from the 4.6% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. H&R Block has a history of exceeding Wall Street’s expectations.

Looking at H&R Block’s peers in the consumer discretionary - specialized consumer services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Frontdoor delivered year-on-year revenue growth of 4.5%, meeting analysts’ expectations, and Service International reported revenues up 3.6%, topping estimates by 1.8%. Frontdoor traded up 18.9% following the results while Service International’s stock price was unchanged.

Read our full analysis of Frontdoor’s results here and Service International’s results here.

There has been positive sentiment among investors in the consumer discretionary - specialized consumer services segment, with share prices up 2% on average over the last month. H&R Block is up 13.3% during the same time and is heading into earnings with an average analyst price target of $42 (compared to the current share price of $46.28).

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