H&R Block Shares Soar After Reporting Strong Q4 Results
H&R Block (HRB) shares are experiencing a significant surge in value on Friday following the tax-preparation company’s announcement of better-than-expected fourth-quarter results. The positive news has also prompted the company to increase its quarterly dividend and initiate a new share-buyback program.
Impressive Financial Performance
In the three months leading up to June 30, H&R Block reported a slight increase in revenue, reaching $1.06 billion compared to $1.03 billion in the same period last year. Although net profit declined from $302.3 million to $257.8 million, both figures surpassed analysts’ estimates compiled by Visible Alpha.
Looking ahead, H&R Block projects even stronger financial performance for fiscal year 2025. After achieving adjusted earnings per share (EPS) of $4.14 on $3.61 billion in revenue in 2024, the company anticipates adjusted EPS between $5.15 and $5.35 for 2025. Additionally, H&R Block expects revenue to range from $3.69 billion to $3.75 billion in the same fiscal year.
Increased Dividend and Share-Buyback Program
As a testament to its confidence in future growth, H&R Block has announced a 17% increase in its quarterly dividend. Shareholders will now receive 37.5 cents per share, up from the previous amount. This move reflects the company’s commitment to rewarding its investors while maintaining a strong financial position.
In addition to the dividend increase, H&R Block has also initiated a new share-buyback program worth $1.5 billion. This program allows the company to repurchase its own shares from the market, which can enhance shareholder value and boost stock prices.
CEO Optimistic About Future Success
H&R Block’s Chief Executive Officer (CEO), Jeff Jones, expressed his enthusiasm for the company’s current achievements and future prospects. He stated, “We continue to make progress, gain new insight, and translate this client success into value for shareholders, and are well positioned to build on this momentum in fiscal 2025 and beyond.”
Investors have responded positively to H&R Block’s strong performance, with the company’s shares surging by 18% soon after the opening bell on Friday. Year-to-date, the stock has already gained nearly 40%, indicating growing investor confidence in the company’s ability to deliver consistent results.
Conclusion
H&R Block’s impressive fourth-quarter results have propelled its stock to new heights. With higher-than-expected revenue and a positive outlook for fiscal year 2025, the company is well-positioned for continued success. The increased dividend and share-buyback program further demonstrate H&R Block’s commitment to creating value for its shareholders. As the company builds on its momentum, investors can expect continued growth and potential returns.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investing in stocks involves risks, and individuals should conduct thorough research and seek professional guidance before making investment decisions.
Read the original article on Investopedia.
