H&R Block Earnings: Here’s Why Investors are Selling Shares Now

H&R Block, Inc. (NYSE:HRB) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.99%.

H&R Block, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.40 in the quarter versus EPS of $-0.38 in the year-earlier quarter.

Revenue: Rose 31.62% to $127 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: H&R Block, Inc. reported adjusted EPS loss of $0.40 per share. By that measure, the company missed the mean analyst estimate of $-0.37. It beat the average revenue estimate of $98.4 million.

Quoting Management: “While we’re disappointed that it is not likely that we’ll be able to complete the bank transaction in time for this tax season, we remain focused on exiting our bank and continue to believe it is in the best interests of our shareholders,” said Bill Cobb, H&R Block’s President and CEO. “Our overall strategy has not changed, and we’re well positioned to continue growing our business profitably and to continue providing significant shareholder returns,” added Cobb.

Key Stats (on next page)…

Revenue decreased 94.23% from $2.2 billion in the previous quarter. EPS decreased to $-0.40 in the quarter versus EPS of $2.54 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.39 to a loss $0.36. For the current year, the average estimate has moved down from a profit of $1.89 to a profit of $1.86 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)