Stock in a company that specializes in preparing tax returns. H&R Block ( HRB 12.11% ) Shares surged today following the company’s surpassing of profit expectations and announcement of an increased dividend for investors. By 10:35 a.m. ET, the stock had risen by 18.2%.
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H&R Block completes the task.
In the last quarter, revenue increased by 3% to reach $1.062 billion, surpassing the expected amount of $1.03 billion. However, profits were impacted by higher expenses in marketing, as well as increased wages and benefits. Earnings per share (EPS) is a financial metric that represents the portion of a company’s profit allocated to each outstanding share of common stock. Decreased from $2.05 to $1.89, which was higher than the expected $1.74.
H&R Block increased its quarterly dividend by 17% to $0.375 per share, resulting in a yield of 2.2%. Additionally, the company unveiled a new plan to buy back $1.5 billion worth of shares, which represents 16% of its market capitalization. In the fourth quarter, the company repurchased 8% of its outstanding shares, boosting earnings per share and demonstrating its dedication to giving back to its shareholders.
CEO Jeff Jones mentioned that in the fiscal year 2024, the company made progress in various products and services, which are beneficial to clients and contribute to their financial assurance.
What are the future plans for H&R Block?
H&R Block continues to see a decline in its market share as online competitors gain more traction. Intuit’s Despite facing competition in the tax preparation industry, TurboTax managed to maintain its position by achieving a 4% growth in revenue in fiscal year 2024. Additionally, the company’s profits have been boosted through the implementation of share buybacks.
As the new year approaches, the company anticipates a revenue range of $3.69 billion to $3.75 billion, reflecting a 3% increase from the previous year. The company also foresees adjusted earnings per share between $5.15 and $5.35, a significant improvement from the $4.41 reported a year ago and surpassing the estimated $4.68.
The stock is rising today, which is not unexpected considering the forecast and the increase in guidance.
