H&R Block, Inc. (HRB) reported a loss for Q1 2022; however, the tax preparation service provider reiterated its FY 2022 financial outlook. Meanwhile, shares were up 1.1% during an extended trading session on November 2.
Notably, the tax season was extended last year up to July 15, 2020. Consequently, revenue and earnings were registered in the first quarter of the prior year. On the contrary, the tax season was extended this year until May 17, 2021; thus, year-over-year results are not comparable. (See H&R Block stock chart on TipRanks)
The Q1 loss of $0.78 per share widened from a loss of $0.24 per share in the same quarter last year, due to lower revenues.
Similarly, revenues tumbled 54% year-over-year to $193 million, primarily due to decreased volume of returns, due to the extension of the previous year’s tax season. However, the decline was partially offset by increased fees from Emerald Card and growth at Wave.
During the quarter, the company repurchased $166 million in shares and retired approximately 4% of the shares outstanding.
Looking ahead, H&R Block CEO, Jeff Jones, commented, “We are well positioned for the 2022 tax season and I am more confident than ever in our ability to execute against our next phase of strategic growth.”
The overall consensus among analysts is a Hold based on 1 Buy, 1 Hold and 1 Sell. At the time of writing, the average H & R Block price target was $24.67, which implies 8.4% upside potential to current levels.
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