Yahoo Finance H&R Block, Inc. Just Beat EPS By 6.1%: Here's What Analysts Think Will Happen Next
It's been a pretty great week for H&R Block, Inc. (NYSE:HRB) shareholders, with its shares surging 13% to US$53.53 in the week since its latest third-quarter results. H&R Block reported US$2.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.86 beat expectations, being 6.1% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on H&R Block after the latest results.
Check out our latest analysis for H&R Block
After the latest results, the three analysts covering H&R Block are now predicting revenues of US$3.66b in 2025. If met, this would reflect a credible 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 3.7% to US$4.45 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$3.64b and earnings per share (EPS) of US$4.39 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$50.00, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values H&R Block at US$56.00 per share, while the most bearish prices it at US$39.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that H&R Block's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 3.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that H&R Block is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that H&R Block's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$50.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for H&R Block going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for H&R Block that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
